Federal Income Taxation Forms and Schedules Worksheet – Description
For this assignment:
Read the statement of facts.
Visit the IRS forms website.
Find and prepare PDF versions of the following IRS forms and Schedules, if applicable:
Form 1099-INT, Form 1099-DIV, and Form 1099-B;
Schedule B and Schedule D; and
Form 1040 (page 1 only)
Statement of Facts
Taxpayer John Doe has the following personal information:Name: John DoeSSN: 555-55-5555Address: 123 Main Street, Anytown, CA 90000Marital Status: Never marriedMinor Children: NoneElections: Standard deductionSummary:John Doe (DOE) has four financial accounts (see details below). DOE is retired and has no sources of earned or passive income. During the year, DOE received the following items of investment income:
$15,000 in interest income from a CD (Financial Account 1);
$20,000 in qualified dividends which were received by DOE’s stock broker, Anytown Trading, LLC (Financial Account 2);
$30,000 in proceeds from the sale of stock, ABC, Inc., (Financial Account 3); and
$600 in interest income from a money market account (Financial Account 4).
With regard to DOE’s ABC, Inc. stock, DOE acquired the stock from his sister in 2015 as a gift. At the time of the gift, his sister’s basis in the stock was $5,000 and the stock had fair market value of $11,000. Due to the value of the gift, DOE’s sister was not required to pay any gift taxes at the time of the transfer to DOE. DOE’s basis in ABC, Inc.’s stock was not reported to IRS.No federal or state taxes were withheld on any of the above transactions.
Financial Account 1: Bank of the AlpsAddress: 111 Alpine Blvd. Ste 100, Zurich, Switzerland
Financial Account 2: Anytown Trading, LLCAccount #: 111-1111EIN: 99-9999998Address: 444 Financial Blvd. Ste 205, Anytown, CA 90000
Financial Account 3: Anytown Trading, LLCAccount #: 111-1112EIN: 99-9999998Address: 444 Financial Blvd. Ste 205, Anytown, CA 90000
Financial Account 4: Anytown Trading, LLCAccount #: 111-1113EIN: 99-9999998Address: 444 Financial Blvd. Ste 205, Anytown, CA 90000
Please answer them following questions according the above facts:
Based on the statement of facts, John Doe’s Form(s) 1099-INT should list the following Payer(s):
A: Bank of the Alps
B: Bank of the Alps / Anytown Trading, LLC
C: Anytown Trading, LLC
D: Anytown Trading, LLC / ABC, Inc.
Based on the statement of facts, John Doe’s Form(s) 1099-INT should list the following amount(s) in Box 1: $15,000, $600, $15,600, $20,000
Based on the statement of facts, John Doe’s Form 1099-DIV should list the following amounts in Boxes 1a and 1b:
A: 1a: $20,000 / 1b: $20,000
B: 1a: $0 / 1b: $20,000
C: 1a: $20,000 / 1b: $0
D: 1a: $10,000 / 1b: $10,000
Based on the statement of facts, John Doe’s Taxable Income should be:
$60,600, $47,650, $41,800, $30,050
Based on the statement of facts, John Doe’s Schedule D should show what amount in Box 9h? $14,000, $30,000, $19,000, $25,000
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