Noah and Joan Arc live with their family in Dayton, OH. Noah’s Social Security number is###-##-#### Noah was born on February 22, 1982 and Joan was born on July 1, 1983. Both enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton.
1. The Arcs have two children, a son named Billie Bob (Social Security number 598-01- 2345), born on March 21, 2010, and a daughter named Mary Sue (Social Security num- ber###-##-####, born on December 3, 2013.
2. Joan and Noah brought a folder of tax documents located on Pages D-3 to D-5.
3. Noah’s pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is ‘‘The Arc,’’ and its taxpayer identification number is ***** Since you handle Noah’s bookkeeping, you have printed the income statement from your Quickbooks software, shown on Page D-5.
4. Noah and Joan paid the following amounts during the year (all by check): Political contributions Church donations (for which a written acknowledgment was received) Real estate taxes on their home Medical co-pays for doctor visits Mortgage interest for purchase of home Tax return preparation fees Credit card interest Automobile insurance premiums Uniforms for Joan $ 250 2,625 1,375 700 See Form 1098 (Page D-4) 350 220 600 125
5. Noah has a long-term capital loss carryover from last year of $2,375.
6. Noah and Joan own rental property located at***** Unit A, Dayton, OH 45409. The revenue and expenses for the year are as follows: Rental income Insurance Interest expense Property taxes Miscellaneous expenses Depreciation (the house was acquired in 1992) $13,800 575 6,870 1,000 700 3,000
7. All members of the Arc household were covered for the entire year under health care insurance through Joan’s employer.
8. The Arcs paid Ohio general sales tax of $976 during the year.
You are to prepare their federal income tax return in good form, signing the return as the preparer. Do not complete an Ohio state income tax return. Make realistic assumptions about any missing data (addresses, etc.) that you may need. The following forms and schedules are required: Form 1040 Schedule A Schedule B Schedule C Schedule D Schedule E Schedule SE Form 2441 Form 8949 Qualified Dividends and Capital Gain Tax Worksheet.
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