09 Apr Carlos and Maria Gomez live
Carlos and Maria Gomez live in Lubbock, Texas. The Gomez’s have three children: Luis (age 15), Amanda (age 13) and Joe (born in January 2019). All three children qualify as federal income tax dependents of Carlos and Maria. The Gomez’s provided the following information:
- Joe’s social security number is 589-74-2833 (See prior return for other SS#s)
- The Gomez’s current mailing address is still 543 West La Patera, Lubbock, Texas 79401
Carlos was laid off from his previous job and received $10,000 of unemployment compensation.
Carlos made 15,000 as an independent contractor with no expenses related to his job before he decided to stay home with the kids. (SCHEDULE C and Schedule SE)
Maria’s bookkeeping service took off after she completed her MSA passed the CPA exam. She had the following income and expenses: (SCHEDULE C & SCHEDULE SE…Maria and Carlos will each have their own schedule C and SE, so you will have 2 of each of these forms)
Revenue:
Accounting Income $ 120,000
Expenses
Advertising $ 8,000
Office Supplies $ 2,000
Rent (She no longer uses a home office) $ 12,000
Professional Insurance $ 4,000
Meals $ 3.000
Business Travel $ 6,000
Total Expenses $ 35,000
No form 1099s were required to be filed.
Carlos and Maria had $6,000 of childcare expenses in 2018 for the baby from DAYAWAY Childcare at 911 Helpme St., Lubbock Texas. FEIN 43-4564564 (Form 2441)
Maria won the Showcase Showdown on the Price is Right. She received $10,000 in cash and a new boat worth $35,000. (SCHEDULE 1)
Maria also taught on-line courses for a local college and received a w-2. (FORM 1040)
Investment Income
Carlos and Maria had the following interest income listed on the appropriate line of form 1099 from the following sources: (SCHEDULE B)
First Bank of Texas $ 275
U.S. Treasury Bonds $ 175
Rio Tinto Minerals $ 800
Grand Junction City Bonds $ 3,500
Carlos and Maria had the following dividend income listed on the appropriate line of form 1099 from the following sources: (All were qualified dividends.) (SCHEDULE B)
General Mills $ 1,850
Sysco Corporation $ 600
Tyco Intergrated Security $ 500
The J. M. Smucker Co. $ 700
IBM Stock $ 4,000
Carlos and Maris sold the following stocks:
Sales Purchase Sale
Security Date Date Price Basis
Grand Junction Bonds 03/14/19 10/31/14 $ 2,400 3,000
Big Splash 03/18/19 06/19/18 $ 9,500 5,000
Tesla 07/21/19 09/15/08 $18,000 7,500
(SCHEDULE D)
Other Income
Carlos and Maria also use Air BNB to occasionally rent out Maria’s old office which they converted to a guest suite. The guest suite does not have its own entrance or kitchen facilities. They made $3,500 renting the guest suite for 70 days in 2018. The rest of the time they used the space themselves. (SCHEDULE E – IF REQUIRED)
Carlos and Maria continue to rent out El Mar unit. It was rented for the entire year with no vacancies. (SCHEDULE E)
Rental revenue $14,000
HOA fee expense $ 1,200
Property taxes paid $ 800
Utilities expense $ 1,650
Liability and hazard insurance $ 2,000
Repairs $ 950
Tax Depreciation $ 500
(Do not do Form 4562)
Information for Itemized Deductions
Carlos and Maria received a form 1098 from the First Bank of Texas related to the mortgage on their primary home. The following information was reported: (Schedule A)
Mortgage interest expense $17,500
Real Estate Taxes $11,000
On May 20, 2018, Carlos and Maria contributed clothing, furniture and a coin collection to the Salvation Army. The original cost of the clothing was $3,000. They received a statement from the Salvation Army valuing the donation at $750. The Salvation Army is located at 350 Stone Ridge Road, Lubbock, TX 79401. In addition, they made the following cash contributions and received a statement from each of the above organizations acknowledging her contribution. (SCHEDULE A and FORM 8283)
SIUE $15,000
United Way (501( C)(3)) 3,000
First Methodist Church 2,500
Democratic National Convention (Carlos) 250
Republican National Convention (Maria) 250
Alliance for Nuclear Responsibility (501( C)(3)) 1,200
The Gomezes paid the following medical expenses during the year:
Dentist Checkups & Cavities (unreimbursed by insurance) $ 4,000
Orthodontist $ 12,000
Chiropractor (unreimbursed by insurance) $ 3,500
Prescriptions (unreimbursed by insurance) $ 425
Lasik $ 3,500
Fertility Treatments $ 15,000
Cosmetic Surgery (tummy tuck) $ 8,000
Acupuncture $ 6,500
(SCHEDULE A)
Other Expenses
Vehicle property tax based upon value $ 1,950
(SCHEDULE A)
Other Information for Personal Tax Return
The Gomez’s made timely federal estimated tax payments for the 2019 tax year of $30,000.
The Gomez’s want to contribute to the Presidential Election Campaign Fund. The Gomez’s would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.
