I need help completing this Tax return. Attached is the necessary information. Thank you. Form 1040 return for Francisco and Eva Martinez. The instructions are indicated at the bottom of the assignment. Facts: Francisco E. and Eva A. Martinez are married and live at 46 Milano Street, Raleigh, NC 27513. They file a joint return and are calendar year, cash basis taxpayers. Francisco is a self-employed accountant (professional activity code is 541213). He maintains an office at 65 Oreo Way, Suite 105, Raleigh, NC 27514. Francisco's work-related expenses for 2015 are as follows: Office rent (prepaid 12 months on 6/1/2015)                                          $18,000 Utilities                                                                                                                    2,400 Office expenses (supplies, , etc.)                                                                   4,800 Fines issued by Raleigh zoning department related to business             300 Tolls (business related)                                                                                         550 Parking expense (business related)                                                                  250               State and local license fees                                                                                 600 Renter's insurance (prepaid 18 months on 6/1/2015)                              1,800 Replacement of reception room furnishings (10/5/2015)                           3,000 Purchased Apple iMac (business related)                                                2,500 Meals                                                                                                              1,400 Entertainment (Carolina Panthers tickets with clients)                            3,000 Travel                                                                                                            1,800         As is the case with all of Francisco's business transactions, the meals and entertainment expenses are properly documented and supported by receipts. The meals and entertainment expense relates to taking clients out to eat and discussing business during the meals. Francisco would then take the client/clients across the street to see home Carolina Panthers football games. No business was discussed during or after the games. Francisco uses MACRS and bonus depreciation for expensing computer and furniture. Francisco traveled to Orlando for a 2 day accounting convention and stayed an extra 3 days for sightseeing. Travel expense is composed of the following ($400 airfare round-trip; $200/night hotel which offers free meals, $50/day rental car, $30/day incidental expenses). Of 14,000 total miles driven in 2015, Francisco drove his truck (a Toyota Tundra purchased on 8/1/2012) 7,500 miles for business (not including commuting). The Martinez's use the automatic mileage method of claiming automobile expenses. 2.  Eva works as a sales executive for .

1. I need help completing this Tax return. Attached is the
necessary information. Thank you. Form 1040 return for
Francisco and Eva Martinez. The instructions are indicated at
the bottom of the assignment.
Facts:
Francisco E. and Eva A. Martinez are married and live at 46
Milano Street, Raleigh, NC 27513. They file a joint return and
are calendar year, cash basis taxpayers.
Francisco is a self-employed accountant (professional activity
code is 541213). He maintains an office at 65 Oreo Way, Suite
105, Raleigh, NC 27514. Francisco's work-related expenses for
2015 are as follows:
Office rent (prepaid 12 months on
6/1/2015) $18,000
Utilities
2,400
Office expenses (supplies, ,
etc.) 4,800
Fines issued by Raleigh zoning department related to
business 300
Tolls (business
related)
550
Parking expense (business
related) 250
State and local license
fees 600
Renter's insurance (prepaid 18 months on
6/1/2015) 1,800
Replacement of reception room furnishings
(10/5/2015) 3,000
Purchased Apple iMac (business
related) 2,500
Meals

2. 1,400
Entertainment (Carolina Panthers tickets with
clients) 3,000
Travel
1,800
As is the case with all of Francisco's business transactions,
the meals and entertainment expenses are properly documented
and supported by receipts. The meals and entertainment expense
relates to taking clients out to eat and discussing business
during the meals. Francisco would then take the client/clients
across the street to see home Carolina Panthers football games.
No business was discussed during or after the games. Francisco
uses MACRS and bonus depreciation for expensing computer
and furniture. Francisco traveled to Orlando for a 2 day
accounting convention and stayed an extra 3 days for
sightseeing. Travel expense is composed of the following ($400
airfare round-trip; $200/night hotel which offers free meals,
$50/day rental car, $30/day incidental expenses). Of 14,000
total miles driven in 2015, Francisco drove his truck (a Toyota
Tundra purchased on 8/1/2012) 7,500 miles for business (not
including commuting). The Martinez's use the automatic
mileage method of claiming automobile expenses.
2. Eva works as a sales executive for Avis rental cars. She
receives several fringe benefits including group health
insurance for her family. She purchased a new Mercedes from
Avis for $50,000 when the FMV was $80,000. The purchase
cost for Avis from Mercedes was $60,000. Eva's company offers
free group term life insurance for all their employees. Eva
received $100,000 in life insurance coverage in 2015 that cost
Avis $10 per $1,000 of coverage. Eva drives to various sales
meetings away from her primary place of business. As a result
she drove 18,000 miles in 2015 of which 7,000 was business
related. Eva uses standard mileage deduction. She also incurred
$500 in tolls. Eva's company uses an accountable plan and
reimbursed her for her mileage and tolls.
3. On September 1, 2012 the Martinez's purchased a house in

3. Augusta, GA located on the National Golf Club of Augusta,
home of the Masters Golf Championship. The house is held as a
rental investment. The property cost $900,000 (of which
$400,000 is allocated to the land) and is located at 1606 Jack
Nicklaus Way, Augusta, GA 30904. The Martinez family
resided in the house for personal recreation totaling 30 days and
rented the house out 160 days in 2015. $48,000 in gross rental
receipts was collected in 2015. The Martinez's allocate rental
expenses per the IRS Method. They use MACRS straight-line
depreciation, assuming the mid-month convention.
Information regarding the rental property expenses for 2015 are
summarized below:
Refundable damage
deposit 4,000
Property
taxes
9,800
Interest on
mortgage 14,5
00
Repairs
4,800
Insurance
2,500
Utilities
3,000
Maintenance
$8,800
Francisco bought 400 shares of Apple stock on January 1, 2013
for $200 per share with a brokerage fee of $1,000. Francisco
sold 100 shares for $140 per share on November 12, 2015.
Francisco then purchased 100 shares of the same type of Apple
stock on December 10, 2015 for $138 share. No brokerage fee
was incurred on the 2015 transactions.

4. Eva had the following stock sales in 2015:
Date Purchased
Basis
Date Sold
Amount Realized
Stock 1
3/16/1996
$7,850
7/22/2015
$6,500
Stock 2
2/12/2015
15,000
9/13/2015
19,500
Stock 3
6/25/2011
11,750
10/12/2015
15,600
Stock 4
7/19/2006
8,250
10/12/2015
12,800
Stock 5
9/18/2015
9,400
11/26/2015
4,500
Besides those previously noted, the Martinez's had the
following receipts for 2015:
Payment for services rendered as an accountant
(as supported on Forms 1099 issued by several
payor client
companies) $110,0

5. 00
Eva's W-2 wages (total includes $30,000 in 401K
plan) $180,000
Golf cart (see information
below)
Income tax refunds for tax year 2014
Federal
tax $6,400
State
tax 7,800 $1
4,200
Interest income--
CitiBank $4,80
0
Raleigh Durham
municipality 6,600
$11,400
Gambling
income $
3,200
Francisco performed accounting services for a client in
exchange for a used golf cart. The accounting services
performed would have been charged at $4,000 to the client. The
client's golf cart had a FMV of $3,500 and he had previously
paid $5,000 for the cart. So the transaction was a barter.
6. In addition to any items previously noted, the
Martinez's had the following expenses for 2015:
Medical and dental expenses not covered by
Insurance
$7,000

6. Real estate tax on personal
residence 4,600
Interest—
Home
mortgage $6,800
Interest on home equity
loan 2,200 9,000
Charitable contributions (See information
below)
Gambling expenses (with proof of
payment) 4,500
Of the $7,000 in medical expenses, $2,000 was used to pay
for an urgent care clinic visit for Benjamin Martinez,
Francisco's brother who is not a dependent. Benjamin was
visiting Francisco and injured his back while assisting in
cleaning out the garage. The remaining $4,700 was used to
cover co-payments and uninsured medical and dental procedures
for Eva and their children. The remaining $300 was for
purchases of over the counter medications.
During 2015, Francisco borrowed $90,000 through a home
equity loan to pay off other debts and take his family on a 3
week trip to Pebble Beach, CA. At the time of this loan the
FMV of their home was $420,000 and the outstanding home
mortgage was $340,000.
The charitable contributions were all made to qualified
charitable organizations as follows: $10,000 cash donated to
their church; The Martinez's also donated a Ford 150 truck to
their son's school. The truck's basis was $25,000 and the FMV
at the time of donation was $16,000.
7. The Martinez's' household includes their three children:
Diego, Victoria, and Thomas. Victoria and Thomas are full-time
students and live fulltime at their home. Diego lived at home all
year and is attending University of North Carolina full time and

7. he also works doing tile and pavement cleaning and earned
$8,000 in 2015. The Martinez's provide more than half of each
of the children's living expenses.
8.Eva's Form W-2 from Marriott, Inc. shows $40,000 withheld
for Federal income tax and $9,941 for state income tax.
Francisco made equal quarterly payments of $7,000 (Federal)
and $1,000 (state). Relevant Social Security numbers are noted
below.
Social Security
Name Number
Birth Date
Francisco L. Martinez 123-45-
6789 07/01/1967
Eva S. Martinez 123-45-
6782 06/27/1968
Diego Martinez 123-45-
6786 04/09/1992
Victoria Martinez 123-45-
6783 12/06/1999
Thomas Martinez 123-45-
6781 07/29/2000
Prepare an income tax return by hand in
blue
pen (no tax software) with provided schedules that were
obtained from the IRS website (irs.gov) for the Martinez's for
2015. In doing this, use the following guidelines:
You may complete assignment individually or in groups up to 5
people. Place all participating student names on cover sheet.
Make necessary assumptions for information not given in the
problem but needed to complete the return. Be aware of the
possible application of certain tax credits.
The taxpayers have the necessary substantiation (e.g., records,
receipts) to support the transactions involved.
If a refund results, the taxpayers want it sent to them.

8. The Martinez's do not wish to contribute to the Presidential
Election Campaign fund.
In the past several years, the Martinez's have itemized their
deductions
from
AGI (have not claimed the standard deduction option). In 2014
they claimed $19,600 in itemized expenses.