Joe & Mary Smith It’s All You CPA

2018 Income Tax Organizer

Joe & Mary Smith Married 5 years
Children: Little Susie – Born November 15, 2018
Filing Status Joint return in 2017
Annual Support: Mary’s Mother
Sole Support of Mother
Lives in a Senior Care Home 4 Blocks from Joe & Mary
Mary’s Wages: $42,000, Insurance Sales
Joe’s profession: Sole Proprietor
Plumbing Express
2018 Revenue & Deductions

Gross Receipts 265,000

Wages 88,000
Office Supplies 4,250
Meals with Clients 2,600
Golf & Client Entertainment 2,000
Country Club Dues 4,100
Plumbing supplies 36,750

Miles Driven to job sites 12,625

My plumbing equipment cost me $52,000.
Home office used? Yes, I use a converted bedroom, It’s 300 square feet.
My Total Home is 2,000 square feet
Mortgage Interest 12,500
Gardening & Maintenance 3,500
Depreciation 4,000
Real Estate Property Taxes 8,000
Homeowners association fees 1,200
Joe & Mary Rental
Big Bear Cabin rented 125 days, used personal 20 days
Rental Income 35,125
Interest 12,500
Taxes 8,600
Maintenance & Repair 4,000
Supplies 2,500
Depreciation 22,000

Mileage driven to Residence to collect rent, hire contractors 3,500

Estimated hours managing rental 350
Gains & Losses
1. We sold our first home $425,000 on March 3
Original Purchase date 2/5/2015
Purchased for $165,000
Remodeled bathrooms 22,000 in 2016
2. Sold stock in Ford Motor Co 5,000 share @ $8 per share
Purchased 2/2/16 for $60,000
3. Sold vacant lot
Inherited from grandparents Feb 1 2018
Sold September 18, 2018
Grandparents’ original purchased $5,000
FMV when the trust transferred $125,000
Sale price $135,000
Sales commissions $5,000

Other Items affecting Joe & Mary’s tax calculation:

 1. Dividends from Ford Stock $250

2. No other itemized deductions

3. Interest from Municipal Bonds $1,000

4. Mary won an exacta at Santa Anita $520

Calculate AGI and Taxable Income for Joe & Mary.

Show ALL calculations, limitations, phase-outs, etc. that affect your calculations or that are effected
by your calculations
Your tax calculation should be summarized as follows
Extra points if you complete using EXCEL

Wages
Dividends & Interest Income
Income from Trade or Business
Rental Income
Capital Gain or Loss
Other Income:
GROSS INCOME
AGI Adjustment “Above the Line” [Name/Description]
ADJUSTED GROSS INCOME
Itemized or Standard Deduction
Qualified Business Income Deduction
TAXABLE INCOME

Nontaxable, deferred, excluded income, gains Losses:

1
2
3