Question

1.      Herman Hiebert’s social security number is XYZ-12-3789. He is married but does not have any dependents. His wife’s name is Rebecca and her social security number is XYZ-45-6789. They live at 1345 E. 44th Street, City, ST 85017

2.      Additional information to complete the tax returns:

a.       Rebecca works at Intel Corporation and earned $160,000 during the tax year.

b.      Her federal tax withholding was $30,000 and Arizona income taxes withheld were $8,000. Herman made federal estimated tax payments of $15,000 and Arizona estimated payments of $1,500

c.       Mortgage interest on their personal residence was $15,200 and property taxes were $5,150.

d.      Additional charitable contributions of $10,500 were paid during the year.

e.       On July 10, 2018, they sold 1,000 shares of Intel Corporation stock for $70 per share. They purchased the stock on May 1, 2012, for $56 per share.

f.        The taxpayers have a long-term capital loss carry forward of $10,000.

g.      Assume AMT does not apply.

h.      Apply any refund to estimated tax payments for the next year.

i.        Instead of preparing Form 4797 (since it was already prepared for the S-corporation), input any gain/loss from the Sec. 1231 asset on Form 1040, Schedule 1, line 14.  

Required

 

Prepare an S-corporation tax return. See data below. You will need the following forms:

·         Form 1120S and corresponding schedules, including Schedules L and M-1

·         Schedule K-1 for Herman Hiebert (from Problem C:11-61)

·         For the Schedule K-1, use the address and SSN information below for Herman.

 

 

Individual Taxpayer Information

 

Individual tax forms required:

·         Form 1040

·         Schedule 1

·         Schedule 3

·         Schedule A

·         Schedule B

·         Schedule D

·         Schedule E

·         Form 8949

·         Form 8995

·         Form 4797 (see item 2.i. below)

Thank you!