Question

1:1-45 Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During 2018, the partnership reported the total items below (100%) on its Form 1065: Ordinary income $180,000 Qualified dividends 10,000 Long-term capital loss (12,000) Long-term capital gain 28,000 Charitable contributions 4,000 Cash distributions to partners 150,000 Howard and his wife Dawn, who file a joint return, also had the following income and deductions from sources not connected with the partnership: Income Dawn's salary $40,000 Qualified dividends 3,000 Deductions Mortgage interest 12,000 Real estate taxes 5,800 Charitable contributions 3,000 Howard and Dawn have two children. During 2018, Dawn had $4,500 in federal income taxes withheld from her salary and Howard made four estimated tax pay- ments of $2,500 each ($10,000 total). Compute Howard and Dawn's Federal income tax liability for 2018 and whether they have a balance due or a tax refund. Ignore the child tax credits.

Answer 1

Sederal haome torstatement of ftoward & Dawn for the year 2018 Stoward Iocome Amount Partiaulars Ordinany income Qualified dividends long -term capital gain. long- term capital loss Total •. of share 1,80,000 10,000 28,000 12000) 2,06,000 40/% in partnership 82400 (206,000x 40'l) Dawn Income HO000 Salary Qualified dividends 3000 (less) eMortagage interest Real estate tores fi2000) (5800) (3000) contributions Charitable వివి, ఏిం 0 1940 19u00 F146 12/- 59550 5८५३ 224 25650 14729 14500 Tazes paid (4SDO + 10000) 229 Tan payable. Page Ne.