Reference no: EM131050592

Required:

• Use the following information to complete Phillip and Claire Dunphy's 2015 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. Ignore the alternative minimum tax for this problem.
• Any required forms, schedules, and instructions can be found at the IRS Web site or moodle. The instructions on moodle can be helpful in completing the forms.
• The forms will include forms 1040, Schedule A, B, C, D, SE, 4562 and 8949. You need to staple and hand in the completed forms (all the information should be typed into the forms) in the above order with a printed cover sheet (10% of the grade will be based on the document organization and clearance).
• This project is time consuming. Please do not wait until the last minutes. Your solutions must be the result of your own work, not a copy of another student's solutions. Please turn in your finished project with a cover sheet before 10:30am, May ll^th.

Facts:

1. Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent children. All three children live at home with Phillip and Claire for the entire year.

The Dunphys provide you with the following additional information:

• The Dunphys do not want to contribute to the presidential election campaign.
• The Dunphys live at 1234 Canal Blvd, Thibodaux, LA 70301
• Phillip's birthday is 11/5/1976 and his Social Security number is 321-44-5766.
• Claire's birthday is 5/12/1979 and her Social Security number is 567-77-1258.
• Haley's birthday is 11/6/2005 and her Social Security number is 621-18-7592.
• Alex's birthday is 2/1/2007 and her Social Security number is 621-92-8751.
• Luke's birthday is 12/12/2009 and his Social Security number is 621-99-9926.
• The Dunphys do not have any foreign bank accounts or trusts.
• The Dunphys have the full year health insurance coverage.

2. Claire received a Form W-2 from her employer reporting the following information for

2015:
Wages, tips, other compensation:	$50,000
Federal income tax withheld	6,175
Social Security tax	3,600
Medicare tax	825
State income taxes withheld	1,800

3. Phillip and Claire received $400 of interest from Chase Savings Bank on a joint account. They also received a qualified dividend of $400 on jointly owned stock in Xila Corporation. In addition, they received $200 of interest from New Orleans Municipal bonds.

4. Phillip's real estate business is named "Phillip Dunphy Realty." His business is located at 5678 Main Street, Houma, LA 70112, and his employer identification number is 93­3488888. Phillip's gross receipts during the year were $950,000. Phillip uses the cash method of accounting for his business. Phillip's business expenses are as follows:

Advertising                                                                                         $ 5,000

Professional d Lies                                                                                800

Professional journals                                                                             200

Employee wages                                                                                48,000

Insurance on office contents                                                               1,120

Accounting services                                                                           2,100

Miscellaneous office expense                                                                500

Utilities and telephone                                                                       3,360

Pay roll taxes                                                                                    3,600

Depreciation                                                                                   To be calculated

5.     Phillip purchased $700,000 of office furniture and equipment held for business use on March 4, 2015. He would like to use the Sec. 179 immediate expensing, but he has elected to not claim any bonus depreciation.

6.     The assets Phillip acquired and placed into service before 2015 are as follows:

Date Acquired	Asset	Original Cost
3/1/08	Office building	$xx,xxx
3/1/08	Land	xx,xxx
5/1/08	Furniture	xxx,xxx
4/12/11	Office equipment	xx,xxx
5/13/13	Computers	xx,xxx (You need to get all these numbers

from the instructor individually)

Phillip did not elect a Section 179 deduction for any of the assets above, nor did he take advantage of the depreciation bonus.

7.     The Dunphys sold 55 shares of Fizbo Corporation common stock on September 3, 2015, for $80 a share. The Dunphys purchased the stock on November 8, 2013, for $65 a share. They also sold a painting for $14,000 on March 1, 2015. Claire purchased the painting for $20,000 on September 1, 2005, as an investment.

8.       Phillip and Claire's personal expenses for the year are as follows:
Credit card debt	$ 800
Qualified medical bills	4,400
Real property taxes	3,300
Home mortgage interest	9,500
Homeowners insurance on the home	1,200
Cash contributions to NSU accounting program	4,500
Union dues	100
Tax return preparation fee (no Schedule C)	360
Tax return preparation fee (Schedule C)	500

9.   Claire's father passed away in 2014. In 2015, Phillip and Claire received $50,000 in life insurance proceeds. Phillip and Claire support Claire's mother, Joy Freud (333-66-9999), in an assisted living facility in Houma. They paid 75% of her support in 2015. Joy's only income is $12,000 nontaxable social security benefits. Joy had the Medicare for the full tax year.

10.    Phillip made timely estimated federal income tax payments of $14,000 each quarter during 2015. He also made estimated state income tax payments of $1,000 each quarter. Phillip made all fourth-quarter payments on December 31, 2015. They would like to receive a refund for any overpayments.