Please see the assignment information and instructions. Please be familiar with an IRAC answer format.
Category: Tax
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“Tax Preparation for the Gaytor Family: Navigating the Complexities of Joint Filing and Self-Employment Income”
Albert Gaytor and his wife Allison are married and file a joint return for 2022. The Gaytors live at 12340 Cocoshell Road, Coral Gables, FL 33134. Captain Albert Gaytor is a charter fishing boat captain but took six months off from his job in 2022 to train and study for his Masters Captain’s License.
In 2022, Albert received a Form W-2 from his employer, Coconut Grove Fishing Charters, Inc.:
Name
Social Security Number
Date of Birth
Albert T. Gaytor
266-51-1966
09/22/1973
Allison A. Gaytor
266-34-1967
07/01/1974
Crocker Gaytor
261-55-1212
12/21/2004
Cayman Slacker
261-11-4444
03/13/2003
Sean Slacker
344-23-5656
05/01/2002 -
Title: S Corporation Tax Return and Comparison to Partnership and Corporate Returns
1. Using the preceding information, prepare a 2023 Form 1120S and Schedule K–1s for Earvin Johnson 25 Newport Blvd, Irvine CA 92618, and Lawrence Bird, 10 Main Street, Irvine, CA 92618. Complete the Forms 1125–A, 1125–E, 4562, 4797 and Schedule D and other forms you deem necessary. If any information is missing, make realistic assumptions. Suggested software: Pro Connect Tax Online.
2. Prepare a letter to one of the S Corporation shareholders explaining what they should do with the information on the K-1 on their individual tax returns. DO NOT USE
COMPUTER GENERATED LETTERS
3. Prepare write up describing the similarities and differences between an S Corporation, partnership 1065 and corporate tax return 1120 that you have prepared. Also discuss the tax aspects of the S Corporation return and any significant you want to communicate to Magic, Inc. (tax issues, planning ideas, etc.). Use appropriate authorities
***Form 1120S, Schedule K-1s, 1125–A, 1125–E, 4562, 4797 and Schedule D and other forms you deem necessary – Please also prepare these forms along with the instruction***