Dave, age 40 and Dawn DeAnza, age 45, are married and have two children… 1 answer below »

III I I II (I 11.¦ 1.¦ V, 9…41, • •
Dave, age 40 and Dawn DeAnza, age 45, are married and have two children, Dizzy age 10 and Desiree age 17. Dave attends a local college part-time in the evening going directly to school from work. The distance from work to school is 20 miles. He made this trip twenty times He paid $12,100 for tuition. He is in his fourth year of college Dave's dad, Dirk, age 65, lives with Dave and his family eight months out of the year. Dirk s main source of income is $2,000 per month in alimony which he saves entirely while living expenses are paid equally by Dave and Dave s sister Donna. Dirk, also spent $1,500 towards college tuition, taking fun classes at the fourth year level. Dave and Dawn have another son, Doogie age 18, by Dawn's prior marriage. Doogie lives with Dave and Dawn for nine months out of the, year. The divorce decree was silent as to who could claim Doogie. Dave and Dawn received $4,000 in child support for the year from Doogie 's dad during the year. Doogie went to a local college, where he is a first year college student. His parents, Dave and Dawn, paid $1,000 for tuition. Dawn inherited from her uncle 100 shares of stock in IBM Corporation. The day she received the stock it was worth $110 per share. Her uncle had paid $10 per share in 1928. Dawn also started her own business in 2017 called "A New Dawn" that sells women's cosmetics.
Dave is also still liable for alimony to his ex-wife Della. He was supposed to pay $2,100 per month for 2016. He forgot to pay the amount due for December. He sent the check on January 2, 2018, but dated the check December 29, 2017.
Other pertinent 2017 facts for Dave and Dawn: Dave's W-2 Wages $ 81,000 Dawn's W-2 Wages 68,000 Dawn's Gross Business Income 21,150 Dawn's Expenses Supplies 1,800 Meals & Entertainment 1,254 Gifts to Clients (all under $25 each) 750 Business Miles: 4,000 Used computer purchased for $3,200 on December 29, 2017. She would like to expense the cost but does not know if a used computer is eligible. Insurance settlement of $4,200 received by Dave
due to injuries he suffered in a car accident 4,200 Municipal Bond Interest 1,255 Unemployment Compensation 1,955 Medical Premiums 2,500 Braces for Kids 8,200 Student loan interest 1,420 Mortgage Interest 12,300 Credit Card Interest 2,100 Real Estate Taxes 14,100 State income taxes paid for 2016 3,200 Charitable Contributions 5,000 Professional Dues 1,120 Preparation fees 575 Tax IRA Contribution Dave contributed 5,500 to a regular IRA –
is not covered Dawn by contributed a retirement plan but Dawn is) 5,500 to a ROTH IRA – (He Sale of Stock: •100 share of the inherited IBM stock at a price of $95 share per •200 Shares of Inc. purchased for $10,000, 1/15/1985. company went out of business in 2016. The Helium Sale of Vacant Land: •Purchased for $3,000 on 1/15/1997. The land was sold on 7/15/2017 for $5,500. Federal Taxes Withheld $ 9,700 State Taxes Withheld 5,200
I almost forgot to tell you Dirk also received $19,500 in social security income, had gambling winnings of $3,000 and gambling losses of $5,000. By the way Dave and Dawn fired their last CPA because he forgot to calculate the AMT for 2016.
Please prepare Form 1040 using all forms and attachments including Form 6251 (AMT) for;
1) Dave and Dawn's tax for 2017 2) Dirk's tax for 2017


Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15