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5 votes
Warner and Augustine Robins, both 35 years old, have been

married for 9 years and have no dependents. Warner is the president
of Jaystar Corporation located in Macon, Georgia. The Jaystar stock
is own

2 Answers

6 votes

Final Answer:

Warner and Augustine Robins are eligible to file their federal income tax return using the filing status "Married Filing Jointly."

Step-by-step explanation:

Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents. Warner is the president of Jaystar Corporation located in Macon, Georgia. The Jaystar stock ownership status is not provided in the question but is not relevant to determining the filing status.

To determine the appropriate filing status, we consider the marital status of the couple. Since Warner and Augustine are married, they can choose to file jointly or separately. In most cases, filing jointly is more advantageous due to various tax benefits, including potentially lower tax rates and higher deductions.

In this scenario, the couple meets the criteria for the "Married Filing Jointly" status as they are legally married and living together. This filing status combines their incomes and deductions on a single tax return. The question does not indicate any circumstances that would warrant a different filing status.

In summary, based on the information provided, Warner and Augustine Robins should file their federal income tax return using the "Married Filing Jointly" status. This is a common and generally beneficial filing status for married couples without specific circumstances requiring an alternative approach.

User Suresh Pattu
by
8.3k points
4 votes

Final Answer:

The tax basis for the donated painting is $25,000 and it has been owned by Warner and Augustine for 5 years.

Step-by-step explanation:

The tax basis represents the original cost of the donated painting.

Warner and Augustine have owned the painting for 5 years.

Therefore, the tax basis for the donated painting is $25,000

The tax basis, signifying the initial cost of the donated painting, plays a crucial role in tax evaluations. The 5-year duration of ownership significantly shapes the tax consequences linked to the contributed asset. This established tax basis of $25,000 becomes a guiding factor in determining the tax treatment of the painting, influencing both financial and charitable aspects.

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Complete Question

Warner and Augustine Robins, both 35 years old, have been married for 9 years and have no dependents.

Warner is the president of Jaystar Corporation located in Macon, Georgia. The Jaystar stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner's father.

Warner and Augustine received the following tax documents:

1) W-2 Form

2) Form 1099-INT

3) Form 1098

4) Letter from Macon Museum of Arts regarding their charitable contribution.

These items are located on separate tabs.

The Robins paid the following amounts (all can be substantiated):

General state sales tax $2,120

Auto loan interest $4,800

Medical insurance $11,400

Income tax preparation fee $750

Charitable contributions in cash:

Church $2,665

Tree Huggers Foundation (a qualified charity) $3,000

Central Georgia Technical University $5,000

Safe-deposit box $200

The Robins had total itemized deductions of $33,5

The Robins had total itemized deductions of $33,567 in 2019 which included a $9,600 state tax deduction.

The tax basis for the donated painting is $25,000 and the painting has been owned by Warner and Augustine for 5 years.

Jaystar does not cover health insurance for its employees. In addition to Warner and Augustine's health insurance premiums shown above, Augustine required surgery which cost $6,663 for which only $3,021 was covered by insurance. Warner had to drive Augustine 125 miles each way to a surgical center.

On January 1, 2020, Warner sold land to Jaystar Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction.

Jaystar Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $12,000 ($6,000 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work).

The Robins received a $2,400 EIP in 2020.

Required:

Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949.

Make realistic assumptions about any missing data.

The taxpayers did not have health insurance coverage for the entire year and they do not want to make a contribution to the presidential election campaign.

Enter all amounts as positive numbers, unless instructed otherwise.

If an amount box does not require an entry or the answer is zero, enter "0".

If required round any dollar amount to the nearest dollar.

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User Grmmph
by
8.1k points