2019 Tax Return: Don & Megan Draper - Form 1040 and Schedules

This assignment presents a comprehensive 2019 individual tax return for Don and Megan Draper, a married couple with two children. The solution includes the completion of Form 8995 (Qualified Business Income Deduction) along with associated schedules. The provided information encompasses taxpayer identification numbers, dates of birth, and detailed financial data necessary for accurate tax filing. The assignment demonstrates the calculation of qualified business income, the application of the qualified business income deduction, and the determination of the final tax liability. This example serves as a practical guide for understanding the complexities of tax preparation, offering insights into form completion and the application of relevant tax regulations.

Form 8995
Department of the Treasury
Internal Revenue Service
Qualified Business Income Deduction
Simplified Computation
▶ Attach to your tax return.
▶ Go to www.irs.gov/Form8995 for instructions and the latest information.
OMB No. 1545-0123
2019
Attachment
Sequence No.55
Name(s) shown on return Your taxpayer identification number
1 (a) Trade, business, or aggregation name (b) Taxpayer
identification number
(c) Qualified business
income or (loss)
i
ii
iii
iv
v
2 Total qualified business income or (loss). Combine lines 1i through 1v,
column (c) . . . . . . . . . . . . . . . . . . . . . . 2
3 Qualified business net (loss) carryforward from the prior year. . . . . . . 3 ( )
4 Total qualified business income. Combine lines 2 and 3. If zero or less, enter -0-4
5 Qualified business income component. Multiply line 4 by 20% (0.20). . . . . . . . . . . 5
6 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss)
(see instructions) . . . . . . . . . . . . . . . . . . . . 6
7 Qualified REIT dividends and qualified PTP (loss) carryforward from the prior
year . . . . . . . . . . . . . . . . . . . . . . . . . 7 ( )
8 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero
or less, enter -0- . . . . . . . . . . . . . . . . . . . . 8
9 REIT and PTP component. Multiply line 8 by 20% (0.20). . . . . . . . . . . . . . . 9
10 Qualified business income deduction before the income limitation. Add lines 5 and 9 .. . . . . 10
11 Taxable income before qualified business income deduction .. . . . . 11
12 Net capital gain (see instructions). . . . . . . . . . . . . . . 12
13 Subtract line 12 from line 11. If zero or less, enter -0-. . . . . . . . 13
14 Income limitation. Multiply line 13 by 20% (0.20) .. . . . . . . . . . . . . . . . . 14
15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on
the applicable line of your return. . . . . . . . . . . . . . . . . . . . . . ▶ 15
16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter -0- .. 16 ( )
17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than
zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 ( )
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 37806C Form8995(2019)
Don Draper 111111111
Quality IT Solutions
111111111 139134
139134
139134
27827
27827
141762
0
141762
28352
27827