Heather and Nikolay Laubert are married and file a joint income tax return. Their address is 3847 Jackdaw Path, Madison, WI 58493. Nikolay’s Social Security number is 000 00 1111, and Heather’s is 000 00 2222. Nikolay is a mechanical engineer, and Heather is a highly renowned speech therapsit. She is self employed. They report all their income and expenses on the cash method. For 2012, they report the following items of income and expenses:
Gross receipts from Heather’s business : $110,000
Rent on Heather’s office: $12,000
Receivables written off during the year (received in Heather’s business): $1,300
Subscriptions to linguistic journals for Heather: $250
Salary for Heather’s secretary receptionist: $22,000
Nikolay’s salary: 78,000
Qualified medical expenses: 12,000
Property taxes on their personal residence: 4,200
State income tax refund received this year (the tax benefit was received in the prior year from the state income tax deduction) : $400
State income taxes withheld on Nikolay’s salary: $4,600
Federal income taxes withheld on Nikolay’s salary: 12,000
Heathers estimated tax payments: 20,000
Interest paid on residence: 11,000
Income tax preparation fee for the prior year’s return paid this year ($500 is allocated to preparation of Schedule C) : $940
Heather and Nikolay sold the following assets:
Asset Acquired Sold Sales Price Cost
KNA stock 2/12/11 3/13/12 $14,000 $8,000
AEN stock 3/2/12 7/7/12 $ 20,000 $22,000
KLN stock 6/8/07 4/10/12 $ 13,000 $17,000
Motorcycle 5/3/04 9/12/12 $ 2,500 $ 6,000
Heather owned the KLN stock and sold it to her brother, Jacob. Heather and Nikolay used the motorcycle for personal recreation.
In addition to the items above, they donate Miner Corppration stock to their community church. The FMV of the stock on the date it is donated (8/18/12) is $6,200. It cost $2,700 when purchased on 3/12/94. Heather and Nikolay’s home is burglarized during the year. The burglar stole an entertainment system (FMV $3,500; cost $5,000), an antique diamond ring and pendant (FMV $12,000; cost $10,000), and a painting (FMV $1,500; cost $1,300). The insurance company pays $1,500 for the entertainment system, $4,000 for the jewelry, and $500 for the painting.
Compute Heather and Nikolay’s 1040, Schedules A, C, D, and SE, Form 4684, and Form 8283
Attachments:
ACC407 assign….docx