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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 23412, and her Social Security number is 123–45–6789. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111–11–1111....

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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 23412, and her Social Security number is 123–45–6789. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111–11–1111. Karl lives with Ashley, and she fully supports him. Bill spent 2011 traveling in Europe and was not a college student. He had gross income of $4,655 in 2011. Ashley owns the Enterprises, LLC sole proprietorship, a data processing service (98– XXXXXXXXXX), which is located at 456 Hill Street, Wayne, OH XXXXXXXXXXThe business activity code is XXXXXXXXXXHer 2011 Form 1040, Schedule C for Panda Enterprises shows revenues of $255,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes of $4,820, meals and entertainment expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Ashley personally purchases health insurance on herself and Bill. The premiums are $23,000 per year. Ashley has an extensive stock portfolio and has prepared the following analysis:

Stock

Number of
Shares

Date
Purchased

Date Sold

Per
Share
Cost

Per Share
Selling Price

Total
Dividends

Beige

10

10/18/10

10/11/11

$80

$ 74

$30

Garland

30

10/11/04

10/11/11

43

157

70

Puce

15

3/10/11

8/11/11

62

33

45

Ashley had $800 of interest income from State of Ohio bonds and $600 of interest income on her Wayne Savings Bank account. She received $25,000 of alimony from her former husband. His Social Security number is 123–45–6788. Ashley itemizes her deductions and had the following items, which may be relevant to her return:

Item

Amount

Comment

Unreimbursed medical expenses for

$1,786

Does not include health insurance

Ashley (all for visits to doctors)

 

premiums.

State income taxes paid

1,830

 

Real property taxes on personal

3,230

 

residence

 

 

Interest paid on home mortgage

8,137

The loan is secured by the residence

(Form 1098)

 

and was incurred when the home

  

was purchased.

Charitable contributions

940

Cash paid to Ashley’s church.

Sales taxes

619

Amount per sales tax table.

Ashley made a $21,000 estimated Federal income tax payment, does not wish any of her taxes to finance presidential elections, has no foreign bank accounts or trusts, and wants any refund to be applied against her 2012 taxes. Compute Ashley’s net tax payable or refund due for 2011. If you use tax forms for your computations, you will need Form 1040 and its Schedules A, C, D, and SE and Form 8949. Suggested software: H&R BLOCK At Home.

Answered Same Day Dec 24, 2021

Solution

David answered on Dec 24 2021
127 Votes
2014 Form 8949
Form 8949
Department of the Treasury
Internal Revenue Service
Sales and Other Dispositions of Capital Assets
▶ Information about Form 8949 and its separate instructions is at www.irs.gov/form8949.
▶ File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.
OMB No. 1545-0074
2014
Attachment
Sequence No. 12A
Name(s) shown on return Social security number or taxpayer identification numbe
Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your
oker. A substitute
statement will have the same information as Form 1099-B. Either may show your basis (usually your cost) even if your
oker did not report it to the IRS.
Brokers must report basis to the IRS for most stock you bought in 2011 or later (and for certain debt instruments you bought in 2014 or later).
Part I Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term
transactions, see page 2.
Note. You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was
eported to the IRS and for which no adjustments or codes are required. Enter the total directly on
Schedule D, line 1a; you are not required to report these transactions on Form 8949 (see instructions).
You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions,
complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page
for one or more of the boxes, complete as many forms with the same box checked as you need.
(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(B) Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(C) Short-term transactions not reported to you on Form 1099-B
1
(a)
Description of property
(Example: 100 sh. XYZ Co.)
(b)
Date acquired
(Mo., day, yr.)
(c)
Date sold or
disposed
(Mo., day, yr.)
(d)
Proceeds
(sales price)
(see instructions)
(e)
Cost or other basis.
See the Note below
and see Column (e)
in the separate
instructions
Adjustment, if any, to gain or loss.
If you enter an amount in column (g),
enter a code in column (f).
See the separate instructions.
(f)
Code(s) from
instructions
(g)
Amount of
adjustment
(h)
Gain or (loss).
Subtract column (e)
from column (d) and
combine the result
with column (g)

2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract
negative amounts). Enter each total here and include on your
Schedule D, line 1b (if Box A above is checked), line 2 (if Box B
above is checked), or line 3 (if Box C above is checked) ▶
Note. If you checked Box A above but the basis reported to the IRS was inco
ect, enter in column (e) the basis as reported to the IRS, and enter an
adjustment in column (g) to co
ect the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2014)
Form 8949 (2014) Attachment Sequence No. 12A Page 2
Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side Social security number or taxpayer identification numbe
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your
oker. A substitute
statement will have the same information as Form 1099-B. Either may show your basis (usually your cost) even if your
oker did not report it to the IRS.
Brokers must report basis to the IRS for most stock you bought in 2011 or later (and for certain debt instruments you bought in 2014 or later).
Part II Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term
transactions, see page 1.
Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported
to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a;
you are not required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete
a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or
more of the boxes, complete as many forms with the same box checked as you need.
(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E) Long-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS
(F) Long-term...
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