Advanced Workshop Return 3
Title:
Summary:
Advanced Workshop Return 3
In this lesson, you will learn the following:
1) Complete Schedule E, Supplemental Income and Loss;
2) Complete Form 4562, Depreciation and Amortization with
worksheets;
3) Complete Form 2210, Underpayment of Estimated Tax;
4) Complete ACH Debit for balance due return;
5) Create the e-file.
Average completion time: 1 hour, 30 minutes
Steps for Advanced Workshop Return 3
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Log in to your user name. Use “TRAINING” if you plan to practice electronically
filing these returns through the TaxWise Training Electronic Filing Center.
Start a new return using 303-XX-XXXX. Use your company’s EFIN for “XXXXXX” if you are in the Training user name. Otherwise, use a unique number agreed
upon by your company.
Allan Timberlake is a single taxpayer with rental income.
He resides at 1500 Horseleg Creek Road, Rome, GA 30161.
His date of birth is September 17, 1962.
His daytime phone number is (706) 555-4444.
Allan had two rental properties that produced income, and he actively participated in
the management of the properties.
The first is a duplex, located at 987 Airport Road, Rome, GA 30165. Total rental
income from this property was $6,000. The expenses for the duplex are listed below.
Advertising .....................$150
Cleaning/Maintenance ...$565
Insurance ........................$357
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Repairs ...........................$789
Garbage service ..............$360
Lawn Care ......................$600
Allan also wishes to depreciate the duplex and items that are used for the property.
The duplex was placed in service on January 1 of this tax year, and he paid $75,000
for it.
At the same time he bought the duplex, he bought a refrigerator and a stove. The
refrigerator cost $825, and the stove cost $450.
He also made some improvements to the duplex on February 2 that cost him $2,000.
The next property purchased was a triplex located at 1575 Willow Lane, Rome, GA
30165. He was paid $31,600 in rental income for this property.
Advertising .....................$200
Cleaning/Maintenance ...$900
Insurance ........................$854
Repairs ...........................$562
Garbage service ..............$360
Lawn Care ......................$700
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Advanced Workshop Return 3
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Allan also wishes to depreciate the triplex, which he bought on January 1 of this year for
$90,000.
His last year’s tax liability was $1,601.
He would like to have any federal balance due deducted from his checking account on April
10.
The routing number is 261170740, and the account number is 618306888.
Social Security Card
ALLAN RALPH TIMBERLAKE
303-XX-XXXX
RECIPIENT’S name, address, and telephone number
OMB No. 1545-0901
Form 1098
RECIPIENT’S Federal
PAYER’S social security no.
identification no.
14-1XXXXXX
303-XX-XXXX
PAYER’S/BORROWER’S name
Allan Timberlake
Street address (including apt no.)
1500 Horseleg Creek Road
City, State, and ZIP code
Rome, GA 30161
Account number (optional)
Rental Property - Duplex
Form 1098
RECIPIENT’S name, address, and telephone number
Forrest Bank
16 Ranger Road
Rome, GA 30165
Mortgage
Interest
Statement
20XX
Forrest Bank
16 Ranger Road
Rome, GA 30165
1 Mortgage interest received from
payer(s)/borrower(s)
$ 1,879.00
2 Points paid on purchase of principal
residence
$
3 Refund of overpaid interest
$
4
Real Estate Taxes Paid
$ 566.00
Copy C
For Recipient
For Privacy Act
And Paperwork
Reduction Act
Notice, see the
20XX General
Instructions for
Forms 1099,
1098, 5498,
and W-2G.
Department of the Treasury – Internal Revenue Service
OMB No. 1545-0901
Mortgage
Interest
Statement
20XX
Form 1098
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Advanced Workshop Return 3
RECIPIENT’S Federal
PAYER’S social security no.
identification no.
14-1XXXXXX
303-XX-XXXX
PAYER’S/BORROWER’S name
Allan Timberlake
1 Mortgage interest received from
payer(s)/borrower(s)
$ 3,500.00
2 Points paid on purchase of principal
residence
Street address (including apt no.)
$
3 Refund of overpaid interest
$
4 Real Estate Taxes:
1500 Horseleg Creek Road
City, State, and ZIP code
Rome, GA 30161
Account number (optional)
Rental Property - Triplex
Form 1098
$ 1,000.00
Copy C
For Recipient
For Privacy Act
And Paperwork
Reduction Act
Notice, see the
20XX General
Instructions for
Forms 1099,
1098, 5498,
and W-2G.
Department of the Treasury – Internal Revenue Service
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