Comprehensive Tax Return Problem :
1. David R. and Susan L. Holman.
David and Susan Holman are married and file a joint return. David is 38 years od age and Susan is 36 . David is a self-employed certified real estate appraiser (C.R.E.) and Susan is employed by Wells Fargo Bank as a trust officer. They have two children : Richard Lawrence , age seven, and Karen Ann , age four, The Holmans currently live at 5901 W.75 th Street , Los Angeles , California 90034, in a home they purchased and occupied on September 6,2016.
Until August 12 , 2016 the Holman family lived at 3085 Windmill Lane in Dallas, Texas , where David was employed by Vestpar Company , a real estate appraisal company and Susan was a bank officer for First National Bank. They sold their home in Dallas and moved to Las Angeles so that Susan could assume her new job as a trust officer and David could become self-employed.
If you need birth dates for any of the Holmans, you may use any date that ensures that the age specified by the problem is their age on the last day of their taxable year. For example, I believe the following dates work:
David October 31, 1978
Susan October 31, 1980
Richard Lawrence October 31, 2009
Karen Ann October 31, 2012
As directed by the Problem, prepare the Holmans’ Federal income tax return for 2016. As indicated by the problem, if they have a refund, they would prefer to have it credited (i.e.,applied) against their 2017 taxes (presumably because they are expecting to have a required estimated tax payment obligation related to David’s self-employment income).