Introduction to Taxation

Brown

Tax Return Project 1  

PROJECT 1 INSTRUCTIONS:

You may work in a group of up to three students to complete Project 1. Each group should work independently of the other groups. Please turn in ONE completed tax return for the group. Your group should submit one printed, paper version of the project to me at the beginning of class on the Project 1 due date (listed on the syllabus schedule). Each student in your group should sign their name on the front of the project indicating that all students participated and maintained academic integrity. Do NOT prepare the tax return with commercial tax preparation software (e.g. Turbo Tax).

Please prepare the Hamlit’s 2019 federal individual income tax return. They have asked you to minimize their tax liability to the extent legally possible. Be sure to read all sections of this document thoroughly (Instructions, Client Tax Information, and the Hints) before beginning work on this project. If necessary, clearly state any assumptions made in completing the tax return. Please read the directions on the forms and include any supporting schedules requested by the forms (unless otherwise noted in the Hints section of this assignment). Be sure to provide detail supporting any calculations. Please round numbers to the nearest dollar.

Your completed Project 1 should include the following items, in the following order:

• A cover letter to the Hamlit’s explaining how much additional tax they have to pay (or any refund they will receive) and any carryforward items that would be available for use in future tax
• 2019 Form 1040: U.S. Individual Income Tax Return (include Schedules 1 – 3, if applicable)
• 2019 Schedule C: Profit or Loss from Business
• 2019 Schedule D: Capital Gains and Losses (and Form 8949)
• 2019 Schedule SE: Self‐Employment Taxes
• 2019 Form 4562: Depreciation and Amortization (remember to include the completed supporting excel spreadsheet