James and Pamela Brock and William Brock provide you with the following information related to expenditure they have made:
|
Type of Documentation
|
James & Pamela Brock
|
William Brock
|
|
Employer paid medical Insurance Premiums
|
$10,000
|
$1,200
|
|
Medical insurance premiums paid by taxpayer
|
$4,000
|
$8,000
|
|
Medical expenses related to eye surgery not covered by insurance
|
17,500
|
N/A
|
|
Reimbursements from medical insurance carrier
|
$5,200
|
N/A
|
|
Prescription drug costs
|
$1,800
|
$2,200
|
|
State income taxes withheld by employer
|
$6,750
|
$450
|
|
State income tax paid when filing tax return
|
$2,300
|
N/A
|
|
Real estate taxes on residence
|
$12,000
|
N/A
|
|
Real estate taxes on Westchester Woods property
|
$5,000
|
N/A
|
|
Property tax on automobile
|
$950
|
$375
|
|
Property tax on Westchester Wood's delivery truck
|
$375
|
N/A
|
|
Sewer use charge
|
$295
|
N/A
|
|
Home mortgage interest
|
$14,400
|
N/A
|
|
Home equity interest (the loan amount is $75,000 and the difference between the FMV of the home and acquisition indebtedness is $55,000)
|
$3,000
|
N/A
|
|
Cash gifts (properly supported)
|
$1,800
|
$1,500
|
|
Contribution
|
Artwork, purchased for $8,000 and held for five years, donated to a qualified charity (the charity will display the artwork). The FMV of the artwork is $27,500
|
N/A
|
|
Contribution
|
N/A
|
Donated land to a qualified charity. The land was held for 22 years. The basis of the land is $4,200 and its FMV is $67,800
|
|
Contribution carryover from a prior year
|
$0
|
$14,000
|
|
Unreimbursed travel expenses (job related)
|
$700
|
$180
|
|
Safe deposit box
|
$55
|
N/A
|
|
Tax preparation (60% allocated to Westchester Wood)
|
$1000
|
$125
|
Required:
Calculate the itemized deductions and
Prepare Form 1040 Schedule A for:
James and Pamela Brock and
William Brock.
Show the calculations you made to determine the deductible itemized deductions for medical, interest, taxes, contributions and miscellaneous deductions. Indicate the amount of any contribution carry forward. Use the AGI for James and Pamela Brock and William Brock that was calculated in Week 5.
Internal Revenue Service's website at https://www.IRS.gov and locate the current year's Form 1040 Schedule A.
Save assignment (Part A) as a Microsoft Excel document. For Part B, save Form 1040 Schedule A accesses from the IRS website after completing.