Video instructions and help with filling out and completing Will Form 4797 Careers

Instructions and Help about Will Form 4797 Careers

My students I thought you might want to see my puppies before we get started on a cute frosty and that one is Gigi the black why didn't phase the sunshine and the other one is peaches peaches okay well today we're gonna have a video lesson and what I want us to look at is the Schedule E okay this is posted on Wolf's tin so if you will go to your Wolf's den page and pull up Schedule E and print you out two copies work one with me and then also I have a problem sheet Schedule E problems this is what we're going to work through today this is on rental income and you put rental income and loss on Schedule E so that's what we're going to look at we'll do one in class and they're playing so anyway we'll just muddle through this today okay I don't have a babysitter so I have to work with them okay let's take a look at what the problem says says the bungees on a ski condo in Utah it was rented for 40 days and used by the bungees for 10 so the information that follows relates to it there was six thousand dollars in rental income mortgage interest to forty eight hundred homeowners dues two thousand utilities one thousand and maintenance of 2800 now it says that this does not reflect an allocation between rental and personal if you remember from the problems in the PowerPoint when they rent it for a certain number of days then we have to do it allocation if it's used personally and for rental it's more or less dual income so we have to do an allocation here and if that rental period is less than ten days it's more or less considered to be rental property rather than personal property so what we're going to do is to take a look and work on the allocation now we only want the business portion of this and we don't have to divide out the rental income rental income is what it is says there's no personal income here so it's all rental all we need to do is to look at the expenses here starting with 4800 going down to 2800 and let's remember that it was rented for 40 days however it was used for a total of 50 days so the allocation for each of these would be 40 divided by 50 so the first thing you need to do is to go through the air and multiply each one of these numbers by 40 over 50 or four-fifths now what that's going to give you is three thousand eight forty on the interest it's going to give you sixteen hundred on the dues it's going to give you eight hundred on the utilities and the maintenance is going to be twenty to forty now this is the rental expenses so that's what we're interested in using now in your homework problem tonight you'd be sure a note if there is a distinction between rental and personal timeframe so you need to read through there if it's all rental then you would not have to make this allocation you just use the numbers that are given on the homework problem which is the second one okay with that in mind it says that these people are active managers so this is not passive income and we want to fill in the schedule age with this information so starting up at the top of schedule a let's put the guys name let's see does it say what his first name is don't recall it says Walter and Rebecca bungee okay I should have written that in there but let's use Walter and Rebecca bungee now be sure and fill out these top portions some of you missed some of this on the problem that you had on the test so make sure that you do fill it out now it did not give a Social Security number and this problem yours does have one let me make up a social security number or the one that's actually should have been given as seven zero zero oh one zero zero zero two now your problem does have a social security number giving okay okay reading through here make sure you read everything in a it said did you make payments in 2015 that would require you to file a 1099 I don't know how you would know this but the answer should be no in this case and then the second one says if yes did or will you so you don't have to check the second one since we said no now I do not have a location of the property in this particular example so let me just give you one that it should have been typed in there but 123 ski condo lane is the one that's given so let's put that in there 123 ski kind of lame I think yours has one and this is going to be in see what the name of this place is Moab Utah I'm kind of going from the answer sheet here okay and I don't have the zip code so we'll just leave it like that now let's take a look type of property from the list below yeah it says list below this below this the answer manual says it's here we go right here sorry single-family multi-family vacation commercial land royalties this is a vacation property so let's plug in a 3 here okay and then it comes over and it says how long where was this I'm trying to hold this thing and look okay how many days was it rented it was rented for 40 days it was used for 10 personally so the total then would be 50 not sure what the qjv is okay so plug that in and then