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Use IRS Publication 529 and California 540A / 540 Booklet to complete this topic.
Complete a Form 2106 for Dave Jones (553-55-6789). He is a painter and works for a company that caters to large homes in the community.
Then, complete a Schedule A, Form 1040, and Form 540 (including Schedule CA).
Expenses:
 | Uniforms** $1,650.00 |
| Union Dues $503.00 |
| Tax preparation fees $955.00 |
| Safe deposit box at bank $50.00 (to keep his jewelry safe) |
| His total actual gas expenses $3,200.00 |
| Parking while at a work site $150.00 |
| DMV vehicle license tax (2007 dodge) $326.00 |
| DMV vehicle license tax (1991 ford p-up) $90.00 |
| Gambling losses* $800.00 |
| Costs of meals while working late $150.00 |
| Check writing fees for 2007 $90.00 |
| Speeding ticket (fine) while driving for work $430.00 |
| His lunches with co-workers while at work $980.00 (lunch with co-workers whilst talking about work improvements). |
*According to his gambling diary, Dave had a total of $800 in gambling losses. He had no winnings in tax year 2007.
** His profession requires special white uniforms consisting of a white cap, white shirt (or jacket for cold weather), white bib overalls, and white work shoes required by his union to wear on the job.
Dave paid a total of $ 9, 600 in rent for his 1 bedroom apartment for 2007.
Dave used his automobile (2001 Ford Pick-up) for his job and used a total of 23,000 miles for the whole year. He started using his car car for work on January 1, 2007. His daily roundtrip miles are about 15 per day for a total of 5,400 for the whole year. Other miles were 2,600. He totaled 15,000 miles that were qualified work related miles. He sometimes uses this pick-up truck to help his friends when they are moving. He kept a detailed record of his miles to and from work and his miles used at work to and from jobs.
He has another car (2007 Dodge Ram) that he purchased in November of 2006. He does not use this car for his job.
In addition to his earnings from work, Dave had the following:
| Interest income from Bank $ 672.00 |
| Unemployment compensation $ 125.00 |
Dave also had educational expenses. He is trying to become a real estate agent. His total investment was the following:
| books and supplies $ 370.00 |
| registration in real estate class $ 499.99 |
In addition, Dave has resume printing and distributing costs for a total of $ 120.00 to land him a job in his new chosen real estate career.
Mr. Jones is not married and has no children. All
information on the following W-2 is current.
Have your return prepared and ready to answer the questions.
Option 1: Complete Quiz online.
Instructions to submit quiz successfully: Step-by-Step check list
When prompted for your name, please enter your CTEC or Preparer Number (if you have a number) with your name as follows: First, last name, Number (e.g. John Smith A012345 / John Smith P012345)
Option 2: Complete and mail answer sheet.
If you choose not to complete the quiz by pressing "Start quiz" above, you can print questions and answer sheet to mail to us. If you complete the online quiz, the advantage is that you get an automatic score as apposed to waiting for a response on a manually graded quiz. You can also print the questions and answer sheet and after you answered the questions on paper submit it online by choosing "Start Quiz" above. Please don't sent answer sheet by certified mail.
Print questions Print Answer sheet
Please Note: You must also complete the tax return for this assignment. If you turn in incomplete work, such as purposely not answering the questions regarding the return you prepared, you will not be given credit for the topic.
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