Purpose: The purpose of this is not merely to learn how to fill-in
Purpose: The purpose of this is not merely to learn how to fill-in
forms but to enable you to meet the following goals:
Calculate individual income tax.
Identify and calculate business deductions and losses.
Apply the elements of taxation of property transactions, including
basis, cost recovery, gains and losses and non-recognition
transactions.
Task: In order to successfully complete this assignment, you must.
Prepare the 2020 federal income tax returns, including all required forms
and schedules, as needed for all members of the Lopez family.
Throughout the return you will see instances where a line on the 1040,
indicates to attach either a schedule or a specific form if required. You
should review the information and instructions to determine and if required
include it as part of a completed return. You can ignore the requirement to
attach a W-2.
When the form contains the phrase (attach schedule), without identifying a
specific form or schedule, this indicates that the amount on the form needs to
be further detailed but there is no specific form on which to do so.
In these cases, you should prepare a schedule that does so, such as in the
following example:
Professional Fees $1,200
Auto expenses 300
Miscellaneous 120
Total, Form 1040, Schedule A, line 11 $1,620
Be sure to attach a list of any positions or conclusions that you made in the
preparation of the return. These will assist in the grading of the return and
would be part of the expectations at a firm to be included in the client file.
Assume that the return is being filed on time.
2
Criteria for Success: In order to earn maximum credit for this
assignment be sure to review the grading rubric.
Dimension/Task Fair Quality
(30 pt.)
Average Quality
(40 pts.)
Excellent
(45 pts.)
Business
Income – 20%
Your return meets
ANY of these
criteria:
-Key items requiring
special tax treatment
were not identified.
-Business income is
materially incorrect
Your return meets ANY
of these criteria:
-A key item requiring
special tax treatment
was not identified.
-A key item was
incorrectly computed.
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