Boston University Form 1040 and Related Forms and Schedules Accounting Task

Form 1040 and Related Forms and Schedules

Form 1040: U.S. Individual Income Tax Return & Schedules 1-5

Schedule A: Itemized Deductions

Schedule C: Profit or Loss from Business (Sole Proprietorship)

Schedule D: Capital Gains and Losses

Schedule E: Supplemental Income and Loss

Schedule SE: Self-Employment Tax (2)

Form 2441: Child and Dependent Care Expenses

Form 4562: Depreciation and Amortization

Form 4797: Sales of Business Property

Form 8582: Passive Activity Loss Limitations

Form 8949: Sales and Other Disposition of Capital Assets

The Spicers will prepare only one joint tax return, their Form 1040, along with all the required

schedules and forms including the Schedule C where the income and expenses for Bill’s Market are reported. A Form 4797 is completed for the business property dispositions; the

sale of the stock is entered on the Form 8949; the net gain on the equipment disposition and

the gain or loss on the stock are both included on the Spicer’s Schedule D. The depreciation

recapture, if any, is also entered on Form 4797 and is transferred directly to the Spicers’ Form 1040.

Two other items are not included on the Schedule C—the health insurance for William and

his family (which is deducted on page 1 of the Form 1040 as a deduction for AGI) and the

charitable contribution (which is included with the Spicers’ personal charitable deductions on

their Schedule A). June is allowed to deduct 14 cents per mile for the 1,200 miles driven

($168) for her volunteer work along with her out-of-pocket charitable expenses of $232.

Their other itemized deductions are $23,800 for mortgage interest, $7,800 for Real Estate taxes, and $680 for Personal Property taxes. Their dividend income is taxed at the Capital Gain rate, while the rest of their income is taxed at the regular rates.

Total 14 Forms