Federal Income Tax Assignment 3
Memorandum
To: Erin Steffin
From: Mario Rios
Date: March 3, 2015
Subject: Assignment 3
Assignment: Assignment 3
You should be ready to do this assignment after approximately class 9, though the skills which are necessary for this assignment are covered gradually throughout the course and cannot be attributed to any single class or small number of classes. Lecture 3 is particularly important in preparing you for this course.
Derrick and Sandra Levin ask you to prepare their tax return for 2008. They give you the following information upon which to work.
1) Derrick’s social security number is 123-45-6789, while Sandra’s is 987-65-4321. The have two children: Peter, ss# 111-11-1111 whois age 8 and Sarah, age 6 , whose social security number is 222-22-2222. All four live at 123 Main Street, Anywhere, CA 10000.
2) Derrick works for Mason Industries, Inc. His Form W-2 is attached. Sandra works for St. Joseph’s Prep School. Her W-2 is also attached.
3) Derrick and Sandra own a brokerage account and a savings account. They earned some interest and dividend income from these. Their Forms 1099 that indicate these amounts are attached.
The W-2s and 1099s can be acessed here: http://lectures.paralegaltech.com/p86782752/ 4) In addition, Derrick and Sandra made the following relevant stock transactions:
- They bought 200 shares the stock AAXX on Feb. 1, 2007 for $5,000. On March 10, 2008, they sold all 200 shares for $6,500.
- They bought 500 shares the stock BBX on Feb. 1, 2008 for $10,000. They sold those shares on April 15, 2008 for $12,200.
- They bought 600 shares of the stock CCC on January 15, 2008 for $13,000 and sold those same shares on March 15, 2008 for $12,100.
[Assume that all these numbers include brokerage fees and commissions.]
5) Derrick and Sandra own their home and they have a 30 year mortgage loan on their home. In 2008, they paid $8,500 in mortgage interest and $1,900 in property taxes. They also contributed a total of $2,000 in cash to Section
To: Erin Steffin
From: Mario Rios
Date: March 3, 2015
Subject: Assignment 3
Assignment: Assignment 3
You should be ready to do this assignment after approximately class 9, though the skills which are necessary for this assignment are covered gradually throughout the course and cannot be attributed to any single class or small number of classes. Lecture 3 is particularly important in preparing you for this course.
Derrick and Sandra Levin ask you to prepare their tax return for 2008. They give you the following information upon which to work.
1) Derrick’s social security number is 123-45-6789, while Sandra’s is 987-65-4321. The have two children: Peter, ss# 111-11-1111 whois age 8 and Sarah, age 6 , whose social security number is 222-22-2222. All four live at 123 Main Street, Anywhere, CA 10000.
2) Derrick works for Mason Industries, Inc. His Form W-2 is attached. Sandra works for St. Joseph’s Prep School. Her W-2 is also attached.
3) Derrick and Sandra own a brokerage account and a savings account. They earned some interest and dividend income from these. Their Forms 1099 that indicate these amounts are attached.
The W-2s and 1099s can be acessed here: http://lectures.paralegaltech.com/p86782752/ 4) In addition, Derrick and Sandra made the following relevant stock transactions:
- They bought 200 shares the stock AAXX on Feb. 1, 2007 for $5,000. On March 10, 2008, they sold all 200 shares for $6,500.
- They bought 500 shares the stock BBX on Feb. 1, 2008 for $10,000. They sold those shares on April 15, 2008 for $12,200.
- They bought 600 shares of the stock CCC on January 15, 2008 for $13,000 and sold those same shares on March 15, 2008 for $12,100.
[Assume that all these numbers include brokerage fees and commissions.]
5) Derrick and Sandra own their home and they have a 30 year mortgage loan on their home. In 2008, they paid $8,500 in mortgage interest and $1,900 in property taxes. They also contributed a total of $2,000 in cash to Section