Ebooks - Webreader.io 5/5/21, 11:14 PM Page 1 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…57c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Appendix A. Tax...

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Exhibit A-1 BOX number is changed to 166,000 and Exhibit A-15 BOX Number is changed to 45,000


Ebooks - Webreader.io 5/5/21, 11:14 PM Page 1 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…57c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Appendix A. Tax Return Problem Coprid/Shutterstock.com; iStockphoto.com/David Freund Introduction The information below will allow you to prepare the 2019 federal tax return for Bill and Joyce Schnappauf. The information is provided in three phases, which correspond to 5/5/21, 11:14 PM Page 2 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 the three major components of computing income tax—gross income, deductions and losses, and property transactions. If your instructor assigns these problems, at the end of each major segment (i.e., Chapters 4, 8, and 12), you should complete the appropriate portions of the forms indicated. If you are not using a tax software package, you should not complete the second page of Form 1040 until you have completed Chapter 12. Completing the tax return problem will help you understand the reporting procedures for the information in each major segment of the text. In addition, it will aid you in reviewing the major topics discussed in the book; it serves as an overview of the course. The Schnappauf Family In 2019, Bill and Joyce Schnappauf live in Wakefield, R.I. Bill is 53, and Joyce is 51. Bill is a district sales manager for USC Equipment Corporation, a Rhode Island firm that manufactures and distributes gaming equipment. Joyce is a self-employed author of children’s books. The Schnappaufs have three children, Will, 21, Dan, 19, and Tom, 16. In February 2020, the Schnappaufs provide the following basic information for preparing their 2019 federal income tax return: 1. The Schnappaufs use the cash method of accounting and file their return on a calendar-year basis. 2. Unless otherwise stated, assume that the Schnappaufs want to minimize the current year’s tax liability. That is, they would like to defer income when possible and take the largest deductions possible, a practice they have followed in the past. 5/5/21, 11:14 PM Page 3 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 3. Joyce’s Social Security number is 371-42-5207. 4. Bill’s Social Security number is 150-52-0546. 5. Will’s Social Security number is 372-46-2611. 6. Dan’s Social Security number is 377-42-3411. 7. Tom’s Social Security number is 375-49-6511. 8. The Schnappaufs do not have any foreign bank accounts or foreign trusts. 9. Their address is 27 Northup Street, Wakefield, R.I. (02879). 10. The Schnappaufs do not wish to contribute to the presidential election campaign. Phase I—Chapters 1–4 The first phase of the tax return problem is designed to introduce you to some of the tax forms and the supporting documentation (Forms W-2, 1099-INT, etc.) needed to complete a basic tax return. The first four chapters focus on the income aspects of individual taxation. Accordingly, this phase of the tax return focuses on the basic income concepts. 1. Bill’s W-2 is provided (Exhibit A-1). The 2019 W-2 includes his salary ($98,000), bonus ($61,000), and income from group-term life insurance coverage in excess of $50,000 ($132.48), and is reduced by his 7 percent contribution ($6,860) to USC’s qualified pension plan. The company matches Bill’s contribution to the plan. Exhibit A-1. 5/5/21, 11:14 PM Page 4 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 The Schnappaufs receive two 1099-INTs for interest (Exhibits A-2 and A-3), two 1099- 5/5/21, 11:14 PM Page 5 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 2. The Schnappaufs receive two 1099-INTs for interest (Exhibits A-2 and A-3), two 1099- DIVs for dividends (Exhibits A-4 and A-5), and a combined interest and dividend statement (Exhibit A-6). Exhibit A-2. 5/5/21, 11:14 PM Page 6 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Exhibit A-3. Exhibit A-4. 5/5/21, 11:14 PM Page 7 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…57c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Exhibit A-5. 5/5/21, 11:14 PM Page 8 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Exhibit A-6. 5/5/21, 11:14 PM Page 9 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 3. Joyce and her brother, Bob, are co-owners of, and active participants in, a furniture- restoration business. Joyce owns 30 percent, and Bob owns 70 percent of the business. The business was formed as an S corporation in 2011. During 2019, the company pays $5,000 in dividends. The basis of Joyce’s stock is $33,000. 4. The Schnappaufs receive a 2018 federal income tax refund of $818 on May 12, 2019. On May 15, 2019, they receive their income tax refund from the state of Rhode Island. In January 2020, the state mails the Schnappaufs a Form 1099-G (Exhibit A-7). Their total itemized deductions in 2018 were $20,161. Exhibit A-7. 5/5/21, 11:14 PM Page 10 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 5. During 2019, Joyce is the lucky ninety-third caller to a local radio station and wins $300 in cash and a Tablet. Despite repeated calls to the radio station, she has not received a Form 1099—MISC. In announcing the prize, the radio station host said that the manufacturer’s suggested retail price for the Tablet is $720. However, Joyce has a catalog from Supersonic Electronics that advertises the Tablet for $595. 6. The Schnappaufs receive a Form W-2G (Exhibit A-8) for their winnings at the Yardley Casino in Connecticut. Exhibit A-8. 5/5/21, 11:14 PM Page 11 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 7. On June 26, 2019, Bill receives a check for $15,480 from the United Insurance Corporation. Though he was unaware of it, he was the designated beneficiary of an insurance policy on the life of his uncle. The policy had a maturity value of $15,100, and the letter from the company stated that his uncle had paid premiums on the policy of $3,620 (Exhibit A-9). Exhibit A-9. 5/5/21, 11:14 PM Page 12 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 8. Joyce is active in the school PTO. During the year, she receives an award for outstanding service to the organization. She receives a plaque and two $125 gift certificates that were donated to the PTO by local merchants. 9. To complete phase I, you will need Form 1040, Schedule B, and Schedule D. INSTRUCTIONS: If you are using tax software to prepare the tax return or are not completing phases II and III of the problem, ignore the instructions that follow. If you are preparing the return manually, you cannot complete some of the forms used in phase I until you receive additional information provided in phase II or phase III. 5/5/21, 11:14 PM Page 13 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 phase I until you receive additional information provided in phase II or phase III. Therefore, as a general rule, you should only post the information to the appropriate form and not compute totals for that form. The following specific instructions will assist you in preparing Part I of the return. a. The only form that can be totaled is Schedule B. b. Only post the appropriate information to Schedule D. Do not total any columns. More information is provided in phase III of the tax return problem. c. Do not calculate total income or adjusted gross income on page 1 of Form 1040. d. Post the appropriate information on page 2 of Form 1040, but do not total this page, compute the federal tax liability, or determine the refund or balance due. PREPARATION AID: Tax forms and instructions can be downloaded from the IRS’s home page (www.irs.treas.gov). You can also download IRS Publication 17, which is a useful guide in preparing the tax return. Phase II—Chapters 5–8 This is the second phase of the tax return problem you began at the end of Chapter 4. This phase of the tax return incorporates the material from Chapters 5, 6, 7 and 8 by providing you with information concerning the Schnappaufs’ deductions for 2019. They provide you with the following information. 1. Joyce writes children’s books for a variety of publishers. She has been self-employed since 2011. As a freelance writer, Joyce incurs costs associated with preparing a manuscript for which she does not yet have a contract. During the year, Joyce makes four business trips, http://www.irs.treas.gov/ 5/5/21, 11:14 PM Page 14 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 each 3 days long, to meet with various publishers. For shorter trips that are closer to home, she either drives or takes the train and returns the same day. On December 10, 2019, Joyce receives an advance (see below) on her next book. Under the contract, Joyce is scheduled to begin work on the book on February 1, 2020, and must have it completed by November 30, 2020. The Schnappaufs’ home has two telephones. Joyce has a separate phone number for her business. The information on Joyce’s business is listed below. Royalties (Exhibits A-10, A-11 and A-12) Publisher’s advance $4,000 Office supplies 170 Train tickets 535 Airfare (4 trips) 1,670 Lodging (12 nights) 2,240 Meals (12 days) 610 Telephone ($28 monthly fee per phone line) 672 Internet provider 570 Cell phone, including business calls 913 Business-related postage 87 Printing/copying 162 Legal fees 2,000 5/5/21, 11:14 PM Page 15 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Interest on auto 254 Exhibit A-10. 5/5/21, 11:14 PM Page 16 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Exhibit A-11. Exhibit A-12. 5/5/21, 11:14 PM Page 17 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 2. On January 2, 2019, Joyce purchases a new car to use in her business. The car, a Volster, costs $15,200. Joyce pays $2,200 in cash and finances the balance through the dealer. She uses the car 45 percent of the time for business and drives a total of 10,800 miles during 2019. The total expenses for the 10,800 miles driven are: repairs and maintenance, $240; insurance, $920; and gasoline, $1,960. The correct depreciation expense for 2019 is . 3. Joyce’s office is located in a separate room in the house and occupies 375 square feet. The total square footage of the house is 2,500. The Schnappaufs purchased the home on July 7, 2005, for $70,000. The local practice is to allocate 10 percent of the purchase price to land. The depreciation percentage for the office is 0.02564. When Joyce started her business on January 1, 2011, the fair market value of the house was $108,000. The total household expenses for 2019 are as follows: Heat $2,170 Insurance 1,480 Electricity 740 $684 ($15, 200 × 45% × 10%) 5/5/21, 11:14 PM Page 18 of 29https://ebooks.cenreader.com/api/v1/reader/print/43a266a6-ff71-4…7c1395273e8d0a?aptoken=2f1e619d6d27c965a9fc82d4070629fdc6ca0a41 Electricity 740 Repairs to kitchen 3,100 Cleaning 1,560 4. Bill and Joyce each contribute the maximum to their respective IRA accounts in 2019. The IRA account is Joyce’s only retirement vehicle. Bill’s basis in his IRA before the current year’s contribution is $26,000, and Joyce’s basis is $36,000
Answered 1 days AfterMay 08, 2021

Answer To: Ebooks - Webreader.io 5/5/21, 11:14 PM Page 1 of...

Riddhi answered on May 10 2021
148 Votes
Final solutiion/f1040--2019.pdf
Note: The form, instructions, or publication you are looking
for begins after this coversheet.
Please review the updated information below.
Reporting Excess Deductions on Termination of an Estate or Trust on
Forms 1040, 1040-SR, and 1040-NR for Tax Year 2018 and Tax Year
2019
Under Proposed Regulations 113295-18, an excess deduction on termination of an estate or
trust allowed in arriving at adjusted gross income (Internal Revenue Code (IRC) section 67(e)
expenses) is reported as an adjustment to income on Forms 1040, 1040-SR, and 1040-NR;
non-miscellaneous itemized deductions are reported, as applicable, on Schedule A (Form 1040
or 1040-SR) or Schedule A (Form 1040-NR); and miscellaneous itemized deductions are not
deductible. Taxpayers may rely on the proposed regulations for tax years of beneficiaries
beginning after 2017 and before the final regulations are published.
For tax year 2019, an excess deduction for IRC section 67(e) expenses is reported as a
write-in on Schedule 1 (Form 1040 or 1040-SR), Part II, line 22, or Form 1040-NR, line 34.
On the dotted line next to line 22 or line 34 (depending on which form is filed), enter the
amount of the adjustment and identify it using the code “ED67(e)”. Include the amount of
the adjustment in the total amount reported on line 22 or line 34.
For tax year 2018, an excess deduction for IRC section 67(e) expenses is reported as a
write-in on Schedule 1 (Form 1040), line 36, or Form 1040-NR, line 34. On the dotted line
next to line 36 or line 34, (depending on which form is filed), enter the amount of the
adjustment and identify it using the code “ED67(e)”. Include the amount of the adjustment in
the total amount reported on line 36 or line 34.
Fo
rm1040 Department of the Treasury—Internal Revenue Service (99)U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
Filing Status
Check only
one box.
Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)
If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying person is
a child but not your dependent.
Your first name and middle initial Last name Your social security number
If joint return, spouse’s first name and middle initial Last name Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Foreign country name Foreign province/state/county Foreign postal code
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund.
Checking a box below will not change your
tax or refund. You Spouse
Standard
Deduction
Someone can claim: You as a dependent Your spouse as a dependent
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind
If more than four dependents,
see instructions and here
Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions):
(1) First name Last name Child tax
credit Credit for other dependents
1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . 1
2a Tax-exempt interest . . . . 2a b Taxable interest. Attach Sch. B if required 2b
3a Qualified dividends . . . . 3a b Ordinary dividends. Attach Sch. B if required 3b
4a IRA distributions . . . . . 4a b Taxable amount . . . . . . 4b
c Pensions and annuities . . . 4c d Taxable amount . . . . . . 4d
5a Social security benefits . . . 5a b Taxable amount . . . . . . 5b
6 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . 6
7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . . . . 7a
b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income . . . . . . . . . . . 7b
8 a Adjustments to income from Schedule 1, line 22 . . . . . . . . . . . . . . . . . 8a
b Subtract line 8a from line 7b. This is your adjusted gross income . . . . . . . . . . . 8b
Standard
Deduction for—
• Single or Married
filing separately,
$12,200
• Married filing
jointly or Qualifying
widow(er),
$24,400
• Head of
household,
$18,350
• If you checked
any box under
Standard
Deduction,
see instructions.
9 Standard deduction or itemized deductions (from Schedule A) . . . . . 9
10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . 10
11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . 11a
b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- . . . . . . . . . . . 11b
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019)

Bill SCHNAPPAUFS 1 5 0 5 2 0 5 4 6
JOYCE SCHNAPPAUFS 3 7 1 4 2 5 2 0 7
NORTHUP STREET 27
WAKEFIELD R.I. 02879
WILL SCHNAPPAUFS 3 7 2 4 6 2 6 1 1 SON ✔
DAN SCHNAPPAUFS 3 7 7 4 2 3 4 1 1 SON ✔
TOM SCHNAPPAUFS 3 7 5 4 9 6 5 1 1 SON ✔
166000
1665 2129
2149 2149
✔ 18724
20514
209516
413
209103
37120
37120
171983
Form 1040 (2019) Page 2
12a Tax (see inst.) Check if any from Form(s): 1 8814 2 4972 3 12a
b Add Schedule 2, line 3, and line 12a and enter the total . . . . . . . . . . . . . . 12b
13a Child tax credit or credit for other dependents . . . . . . . . . . 13a
b Add Schedule 3, line 7, and line 13a and enter the total . . . . . . . . . . . . . . 13b
14 Subtract line 13b from line 12b. If zero or less, enter -0- . . . . . . . . . . . . . . . 14
15 Other taxes, including self-employment tax, from Schedule 2, line 10 . . . . . . . . . . . . 15
16 Add lines 14 and 15. This is your total tax . . . . . . . . . . . . . . . . . . 16
17 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . 17
18 Other payments and refundable credits: • If you have a
qualifying child,
attach Sch. EIC.
• If you have
nontaxable
combat pay, see
instructions.
a Earned income credit (EIC) . . . . . . . . . . . . . . . 18a
b Additional child tax credit. Attach Schedule 8812 . . . . . . . . . 18b
c American opportunity credit from Form 8863, line 8 . . . . . . . . 18c
d Schedule 3, line 14 . . . . . . . . . . . . . . . . . 18d
e Add lines 18a through 18d. These are your total other payments and refundable credits . . . . . 18e
19 Add lines 17 and 18e. These are your total payments . . . . . . . . . . . . . . . 19
Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid . . . . . . 20
21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here . . . . . . 21a
Direct deposit?
See instructions.
b Routing number c Type: Checking Savings
d Account number
22 Amount of line 20 you want applied to your 2020 estimated tax . . . . 22
Amount
You Owe
23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions . . . . . 23
24 Estimated tax penalty (see instructions) . . . . . . . . . . . 24
Third Party
Designee
(Other than
paid preparer)
Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below.
No
Designee’s
name
Phone
no.
Personal identification
number (PIN)
Sign
Here
Joint return?
See instructions.
Keep a copy for
your records.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature Date Your occupation If the IRS sent you an Identity
Protection PIN, enter it here
(see inst.)
Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an
Identity Protection PIN, enter it here
(see inst.)
Phone no. Email address
Paid
Preparer
Use Only
Preparer’s name Preparer’s signature Date PTIN Check if:
3rd Party Designee
Self-employedFirm’s name Phone no.
Firm’s address Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019)
29625
29625
0
0
29625
826
30451
15302
840
840
16142
0
0
14309
Final solutiion/f1040s2--2019.pdf
SCHEDULE 2
(Form 1040 or 1040-SR) 2019
Additional Taxes
Department of the Treasury
Internal Revenue Service
Attach to Form 1040 or 1040-SR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
OMB No. 1545-0074
Attachment
Sequence No. 02
Name(s) shown on Form 1040 or 1040-SR Your social security number
Part I Tax
1 Alternative minimum tax. Attach Form 6251 . . . . . . . . . . . . . . . . . . . 1
2 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . 2
3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b . . . . . . . . 3
Part II Other Taxes
4 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . 4
5 Unreported social security and Medicare tax from Form: a 4137 b 8919 . . . . . 5
6

Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form
5329 if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7a Household employment taxes. Attach Schedule H . . . . . . . . . . . . . . . . . 7a
b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required . . . . 7b
8 Taxes from: a Form 8959 b Form 8960
c Instructions; enter code(s) 8
9 Section 965 net tax liability installment from Form 965-A . . . . . . . 9
10

Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR,
line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040 or 1040-SR) 2019
Bill Schnappauf 150-52-5406
0
0
0
826
826
Final solutiion/f1040s3--2019.pdf
SCHEDULE 3
(Form 1040 or 1040-SR)
Department of the Treasury
Internal Revenue Service
Additional Credits and Payments
Attach to Form 1040 or 1040-SR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
OMB No. 1545-0074
2019
Attachment
Sequence No. 03
Name(s) shown on Form 1040 or 1040-SR Your social security number
Part I Nonrefundable Credits
1 Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . . . . . . . 1
2 Credit for child and dependent care expenses. Attach Form 2441 . . . . . . . . . . . . 2
3 Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . . . . . . 3
4 Retirement savings contributions credit. Attach Form 8880 . . . . . . . . . . . . . . 4
5 Residential energy credits. Attach Form 5695 . . . . . . . . . . . . . . . . . . . 5
6 Other credits from Form: a 3800 b 8801 c 6
7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b . . . . . . . 7
Part II Other Payments and Refundable Credits
8 2019 estimated tax payments and amount applied from 2018 return . . . . . . . . . . . 8
9 Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . . . . . 9
10 Amount paid with request for extension to file (see instructions) . . . . . . . . . . . . . 10
11 Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . . . . . . 11
12 Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . . . . . . . . 12
13 Credits from Form: a 2439 b Reserved c 8885 d 13
14 Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d . . . . . . . . . 14
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040 or 1040-SR) 2019
Bill Schnappauf 150-52-5406
0
0
0
0
0
0
0
840
0
0
0
0
0
840
Final solutiion/f4562--2019.pdf
Form 4562
Department of the Treasury
Internal Revenue Service (99)
Depreciation and Amortization
(Including Information on Listed Property)
Attach to your tax return.
Go to www.irs.gov/Form4562 for instructions and the latest information.
OMB No. 1545-0172
2019
Attachment
Sequence No. 179
Name(s) shown on return Business or activity to which this form relates Identifying number
Part I Election To Expense Certain Property Under Section 179
Note: If you have any listed property, complete Part V before you complete Part I.
1 Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . 1
2 Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . 2
3 Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . 3
4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . 4
5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing
separately, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 (a) Description of property (b) Cost (business use only) (c) Elected cost
7 Listed property. Enter the amount from line 29 . . . . . . . . . 7
8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . . 8
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . 9
10 Carryover of disallowed deduction from line 13 of your 2018 Form 4562 . . . . . . . . . . . 10
11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11
12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 . . . . . . 12
13 Carryover of disallowed deduction to 2020. Add lines 9 and 10, less line 12 13
Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.
Part II Special Depreciation Allowance and Other Depreciation (Don’t include listed property. See instructions.)
14 Special depreciation allowance for qualified property (other than listed property) placed in service
during the tax year. See instructions . . . . . . . . . . . . . . . . . . . . . . . 14
15 Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . 15
16 Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . 16
Part III MACRS Depreciation (Don’t include listed property. See instructions.)
Section A
17 MACRS deductions for assets placed in service in tax years beginning before 2019 . . . . . . . 17
18 If you are electing to group any assets placed in service during the tax year into one or more general
asset accounts, check here . . . . . . . . . . . . . . . . . . . . . .
Section B—Assets Placed in Service During 2019 Tax Year Using the General Depreciation System
(a) Classification of property
(b) Month and year
placed in
service
(c) Basis for depreciation
(business/investment use
only—see instructions)
(d) Recovery
period
(e) Convention (f) Method (g) Depreciation deduction
19a 3-year property
b 5-year property
c 7-year property
d 10-year property
e 15-year property
f 20-year property
g 25-year property 25 yrs. S/L
h Residential rental 27.5 yrs. MM S/L
property 27.5 yrs. MM S/L
i Nonresidential real 39 yrs. MM S/L
property MM S/L
Section C—Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System
20a Class life S/L
b 12-year 12 yrs. S/L
c 30-year 30 yrs. MM S/L
d 40-year 40 yrs. MM S/L
Part IV Summary (See instructions.)
21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . 21
22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter
here and on the appropriate lines of your return. Partnerships and S corporations—see instructions . 22
23 For assets shown above and placed in service during the current year, enter the
portion of the basis attributable to section 263A costs . . . . . . . . . 23
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2019)
BILL SCHNAPPAUF RENTAL ROYALTY 150-52-0546
500000
2000000
500000
500000
1625
03/20/2019 3250 118
118
Form 4562 (2019) Page 2
Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for
entertainment, recreation, or amusement.)
Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a,
24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable.
Section A—Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.)
24a Do you have evidence to support the business/investment use claimed? Yes No 24b If “Yes,” is the evidence written? Yes No
(a)
Type of property (list
vehicles first)
(b)
Date placed
in service
(c)
Business/
investment use
percentage
(d)
Cost or other basis
(e)
Basis for depreciation
(business/investment
use only)
(f)
Recovery
period
(g)
Method/
Convention
(h)
Depreciation
deduction
(i)
Elected section 179
cost
25 Special depreciation allowance for qualified listed property placed in service during
the tax year and used more than 50% in a qualified business use. See instructions . 25
26 Property used more than 50% in a qualified business use:
%
%
%
27 Property used 50% or less in a qualified business use:
% S/L –
% S/L –
% S/L –
28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . 28
29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . . 29
Section B—Information on Use of Vehicles
Complete this section for vehicles used by a sole proprietor, partner, or other “more than 5% owner,” or related person. If you provided vehicles
to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles.
30 Total business/investment miles driven during
the year (don’t include commuting miles) .
(a)
Vehicle 1
(b)
Vehicle 2
(c)
Vehicle 3
(d)
Vehicle 4
(e)
Vehicle 5
(f)
Vehicle 6
31 Total commuting miles driven during the year
32 Total other personal (noncommuting)
miles driven . . . . . . . . .
33 Total miles driven during the year. Add
lines 30 through 32 . . . . . . .
34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No
use during off-duty hours? . . . . .
35 Was the vehicle used primarily by a more
than 5% owner or related person? . .
36 Is another vehicle available for personal use?
Section C—Questions for Employers Who Provide Vehicles for Use by Their Employees
Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren’t
more than 5% owners or related persons. See instructions.
37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by
your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes No
38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your
employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . .
39 Do you treat all use of vehicles by employees as personal use? . . . . . . . . . . . . . . . .
40 Do you provide more than five vehicles to your employees, obtain information from your employees about the
use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . .
41 Do you meet the requirements concerning qualified automobile demonstration use? See instructions. . . . .
Note: If your answer to 37, 38, 39, 40, or 41 is “Yes,” don’t complete Section B for the covered vehicles.
Part VI Amortization
(a)
Description of costs
(b)
Date amortization
begins
(c)
Amortizable amount
(d)
Code section
(e)
Amortization
period or
percentage
(f)
Amortization for this year
42 Amortization of costs that begins during your 2019 tax year (see instructions):
43 Amortization of costs that began before your 2019 tax year . . . . . . . . . . . . . 43
44 Total. Add amounts in column (f). See the instructions for where to report . . . . . . . . 44
Form 4562 (2019)
Final solutiion/f4684--2019.pdf
Form 4684
Department of the Treasury
Internal Revenue Service
Casualties and Thefts
Go to www.irs.gov/Form4684 for instructions and the latest information.
Attach to your tax return.
Use a separate Form 4684 for each casualty or theft.
OMB No. 1545-0177
2019
Attachment
Sequence No. 26
Name(s) shown on tax return Identifying number
SECTION A—Personal Use Property (Use this section to report casualties and thefts of property not used in a trade or
business or for income-producing purposes. You must use a separate Form 4684 (through line 12) for each casualty or
theft event involving personal use property. If reporting a qualified disaster loss, see the instructions for special
rules that apply before completing this section.)
If the casualty or theft loss is attributable to a federally declared disaster, check here and enter the FEMA disaster declaration number.
(See instructions.)
1 Description of properties (show type, location (city, state, and ZIP code), and date acquired for each property). Use a separate line for each
property lost or damaged from the same casualty or theft. If you checked the box and entered the FEMA disaster declaration number above,
enter the ZIP code for the property most affected on the line for Property A.
Type of Property City and State ZIP Code Date Acquired
Property A
Property B
Property C
Property D
Properties
A B C D
2 Cost or other basis of each property . . . . . . 2
3

Insurance or other reimbursement (whether or not you
filed a claim) (see instructions) . . . . . . . . 3
Note: If line 2 is more than line 3, skip line 4.
4




Gain from casualty or theft. If line 3 is more than line 2,
enter the difference here and skip lines 5 through 9 for
that column. See instructions if line 3 includes insurance
or other reimbursement you did not claim, or you
received payment for your loss in a later tax year . . 4
5 Fair market value before casualty or theft . . . . 5
6 Fair market value after casualty or theft . . . . . 6
7 Subtract line 6 from line 5 . . . . . . . . . 7
8 Enter the smaller of line 2 or line 7 . . . . . . 8
9 Subtract line 3 from line 8. If zero or less, enter -0- . . 9
10 Casualty or theft loss. Add the amounts on line 9 in columns A through D . . . . . . . . . . . . . 10
11 Enter $100 ($500 if qualified disaster loss rules apply; see instructions) . . . . . . . . . . . . . . 11
12 Subtract line 11 from line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . 12
Caution: Use only one Form 4684 for lines 13 through 18.
13 Add the amounts on line 4 of all Forms 4684 . . . . . . . . . . . . . . . . . . . . . 13
14 Add the amounts on line 12 of all Forms 4684. If you have losses not attributable to a federally declared disaster, see
the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Caution: See instructions before completing line 15.
15

• If line 13 is more than line 14, enter the difference here and on Schedule D. Do not
complete the rest of this section.
• If line 13 is equal to line 14, enter -0- here. Do not complete the rest of this section.
• If line 13 is less than line 14, and you have no qualified disaster losses subject to the
$500 reduction on line 11 on any Form(s) 4684, enter -0- here and go to line 16. If you
have qualified disaster losses subject to the $500 reduction, subtract line 13 from line 14
and enter the smaller of this difference or the amount on line 12 of the Form(s) 4684
reporting those losses. Enter that result here and on Schedule A (Form 1040 or
1040-SR), line 16, or Form 1040-NR, Schedule A, line 7. If you claim the standard
deduction, also include on Schedule A (Form 1040 or 1040-SR), line 16, the amount of
your standard deduction (see the Instructions for Forms 1040 and 1040-SR). Do not
complete the rest of this section if all of your casualty or theft losses are subject to the
$500 reduction.
} . . . . . . . 15
16 Add lines 13 and 15. Subtract the result from line 14 . . . . . . . . . . . . . . . . . . . 16
17 Enter 10% of your adjusted gross income from Form 1040 or 1040-SR, line 8b, or Form 1040-NR, line 35. Estates
and trusts, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Subtract line 17 from line 16. If zero or less, enter -0-. Also, enter the result on Schedule A (Form 1040 or 1040-SR),
line 15, or Form 1040-NR, Schedule A, line 6. Estates and trusts, enter the result on the “Other deductions” line of
your tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
For Paperwork Reduction Act Notice, see instructions. Cat. No. 12997O Form 4684 (2019)
JOYCE SCHNAPPAUFS 150520546
Form 4684 (2019) Attachment Sequence No. 26 Page 2
Name(s) shown on tax return. Do not enter name and identifying number if shown on other side. Identifying number
SECTION B—Business and Income-Producing Property
Part I Casualty or Theft Gain or Loss (Use a separate Part l for each casualty or theft.)
19

Description of properties (show type, location, and date acquired for each property). Use a separate line for each property lost or damaged from
the same casualty or theft. See instructions if claiming a loss due to a Ponzi-type investment scheme and Section C is not completed.
Property A
Property B
Property C
Property D
Properties
A B C D
20 Cost or adjusted basis of each property . . . . . 20
21

Insurance or other reimbursement (whether or not you
filed a claim). See the instructions for line 3 . . . . 21
Note: If line 20 is more than line 21, skip line 22.
22





Gain from casualty or theft. If line 21 is more than line 20, enter
the difference here and on line 29 or line 34, column (c), except
as provided in the instructions for line 33. Also, skip lines 23
through 27 for that column. See the instructions for line 4 if line
21 includes insurance or other reimbursement you did not
claim, or you received payment for your loss in a later tax year 22
23 Fair market value before casualty or theft . . . . 23
24 Fair market value after casualty or theft . . . . . 24
25 Subtract line 24 from line 23 . . . . . . . . 25
26 Enter the smaller of line 20 or line 25 . . . . . 26
Note: If the property was totally destroyed by casualty or
lost from theft, enter on line 26 the amount from line 20.
27 Subtract line 21 from line 26. If zero or less, enter -0- . 27
28 Casualty or theft loss. Add the amounts on line 27. Enter the total here and on line 29 or line 34 (see instructions) . 28
Part II Summary of Gains and Losses (from separate Parts l)
(a) Identify casualty or theft
(b) Losses from casualties or thefts
(i) Trade, business,
rental, or royalty
property
(ii) Income-
producing property
(c) Gains from
casualties or thefts
includible in income
Casualty or Theft of Property Held One Year or Less
29 ( ) ( )
( ) ( )
30 Totals. Add the amounts on line 29 . . . . . . . . . . . . 30 ( ) ( )
31 Combine line 30, columns (b)(i) and (c). Enter the net gain or (loss) here and on Form 4797, line 14. If Form 4797 is
not otherwise required, see instructions . . . . . . . . . . . . . . . . . . . . . . . 31
32 Enter the amount from line 30, column (b)(ii) here. Individuals, enter the amount from income-producing property on
Schedule A (Form 1040 or 1040-SR), line 16, or Form 1040-NR, Schedule A, line 7. (Do not include any loss on
property used as an employee.) Estates and trusts, partnerships, and S corporations, see instructions . . . . 32
Casualty or Theft of Property Held More Than One Year
33 Casualty or theft gains from Form 4797, line 32 . . . . . . . . . . . . . . . . . . . . . . . . . 33
34 ( ) ( )
( ) ( )
35 Total losses. Add amounts on line 34, columns (b)(i) and (b)(ii) . . . . . 35 ( ) ( )
36 Total gains. Add lines 33 and 34, column (c) . . . . . . . . . . . . . . . . . . . . . . 36
37 Add amounts on line 35, columns (b)(i) and (b)(ii) . . . . . . . . . . . . . . . . . . . . 37
38 If the loss on line 37 is more than the gain on line 36:
a


Combine line 35, column (b)(i) and line 36, and enter the net gain or (loss) here. Partnerships and S corporations, see
the Note below. All others, enter this amount on Form 4797, line 14. If Form 4797 is not otherwise required, see
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38a
b



Enter the amount from line 35, column (b)(ii) here. Individuals, enter the amount from income-producing property on
Schedule A (Form 1040 or 1040-SR), line 16, or Form 1040-NR, Schedule A, line 7. (Do not include any loss on
property used as an employee.) Estates and trusts, enter on the “Other deductions” line of your tax return.
Partnerships and S corporations, see the Note below . . . . . . . . . . . . . . . . . . . 38b
39

If the loss on line 37 is less than or equal to the gain on line 36, combine lines 36 and 37 and enter here. Partnerships,
see the Note below. All others, enter this amount on Form 4797, line 3 . . . . . . . . . . . . . . 39
Note: Partnerships, enter the amount from line 38a, 38b, or 39 on Form 1065, Schedule K, line 11.
S corporations, enter the amount from line 38a or 38b on Form 1120-S, Schedule K, line 10.
Form 4684 (2019)
Form 4684 (2019) Attachment Sequence No. 26 Page 3
Name(s) shown on tax return Identifying number
SECTION C—Theft Loss Deduction for Ponzi-Type Investment Scheme Using the Procedures in Revenue
Procedure 2009-20 (Complete this section in lieu of Appendix A in Revenue Procedure 2009-20. See instructions.)
Part I Computation of Deduction
40 Initial investment . . . . . . . . . . . . . . . . . . . . . . . 40
41 Subsequent investments (see instructions) . . . . . . . . . . . . . . . 41
42

Income reported on your tax returns for tax years prior to the discovery year
(see instructions) . . . . . . . . . . . . . . . . . . . . . . 42
43 Add lines 40, 41, and 42 . . . . . . . . . . . . . . . . . . . . 43
44 Withdrawals for all years (see instructions) . . . . . . . . . . . . . . . 44
45 Subtract line 44 from line 43. This is your total qualified investment . . . . . . . . 45
46

Enter 0.95 (95%) if you have no potential third-party recovery. Enter 0.75 (75%) if you have
potential third-party recovery . . . . . . . . . . . . . . . . . . . 46 .
47 Multiply line 46 by line 45 . . . . . . . . . . . . . . . . . . . . 47
48 Actual recovery . . . . . . . . . . . . . . . . . . . . . . . 48
49 Potential insurance/Securities Investor Protection Corporation (SIPC) recovery . . . . 49
50 Add lines 48 and 49. This is your total recovery . . . . . . . . . . . . . . 50
51 Subtract line 50 from line 47. This is your deductible theft loss. Include this amount on line
28 of Section B, Part I. Do not complete lines 19–27 for this loss. Then complete Section B,
Part II . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Part II Required Statements and Declarations (See instructions.)
• I am claiming a theft loss deduction pursuant to Revenue Procedure 2009-20 from a specified fraudulent arrangement conducted by the following
individual or entity.
Name of individual or entity
Taxpayer identification number (if known)
Address
• I have written documentation to support the amounts reported in Part I of this Section C.
• I am a qualified investor, as defined in section 4.03 of Revenue Procedure 2009-20.
• If I have determined the amount of my theft loss deduction using 0.95 on line 46 above, I declare that I have not pursued and do not intend to pursue
any potential third-party recovery, as that term is defined in section 4.10 of Revenue Procedure 2009-20.
• I agree to comply with the conditions and agreements set forth in Revenue Procedure 2009-20 and this Section C.
• If I have already filed a return or amended return that does not satisfy the conditions in section 6.02 of Revenue Procedure 2009-20, I agree to all
adjustments or actions that are necessary to comply with those conditions. The tax year(s) for which I filed the return(s) or amended return(s) and the
date(s) on which they were filed are as follows:
Form 4684 (2019)
Form 4684 (2019) Attachment Sequence No. 26 Page 4
Name(s) shown on tax return Identifying number
SECTION D—Election To Deduct Federally Declared Disaster Loss in Preceding Tax Year (See instructions.)
Part I Election Statement
By providing all of the information below, the taxpayer elects, under section 165(i) of the Internal Revenue Code, to deduct a loss attributable to a federally
declared disaster and that occurred in a federally declared disaster area in the tax year immediately preceding the tax year the loss was sustained.
Attach this Section D to your return or amended return for the tax year immediately preceding the tax year the loss was sustained to claim the disaster
loss deduction.
52 Provide the name or a description of the federally declared disaster.
53 Provide the date or dates (mm/dd/yyyy) of the loss or losses attributable to the federally declared disaster.
54 Specify the address, including the city or town, county or parish, state and ZIP code where the damaged or destroyed property was located at
the time of the disaster.
Part II Revocation of Prior Election
By providing all of the information below, the taxpayer revokes the prior election under section 165(i) of the Internal Revenue Code to deduct a loss
attributable to a federally declared disaster and that occurred in a federally declared disaster area in the tax year immediately preceding the tax year
the loss was sustained.
Attach this Section D to your amended return for the tax year immediately preceding the tax year the loss was sustained to remove the previous
disaster loss deduction.
55 Provide the name or a description of the federally declared disaster and the address of the property that was damaged or destroyed and for
which the election was claimed.
56 Specify the date (mm/dd/yyyy) you filed the prior election, which you are now revoking. (See...
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