Tax Return Memo

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Melissa O'Connor 123 Tax Rd, Lost Island, CA 92888 ☎

Thurston & Lovie Howell 666 Minnow Lane Lost Island, CA 92888 Subject: Tax Return

Hello

I have completed your tax return for the 2012 tax year. While you provided adequate documentation, some of it was unnecessary. Any information pertaining to the family pet is not needed. Animals cannot be claimed for any reason. I would like to see a photo of skipper to see how his nose healed up.

In the future you may want to think about claiming depreciation on your home office. You elected not to do so this year, but it could have resulted in a larger refund. You could also choose to do the same for Lovie's vehicle if she is using it to meet clients or take clients out for dinner meetings, etc. Thurston's receipts for gas to and from work were not a deductible expense.

It was a good decision to take the education incentives for the children. You received the American Opportunity Credit and Lifetime Learning Credit. I could have included Gingers 2,000 income in your return, but I did not. While it would have taken the burden of filing off of Ginger, it would have increased your total income and may have resulted in a smaller refund.

As for your rental property, you may want to increase the rent. It is costing you more to maintain the property than you are making on it. You suffered a $1600 loss on the property in 2012.

For your return I have completed the following forms: 1040 Schedule E Supplemental Income and Loss Schedule D Capital Gains and Losses Schedule A Itemized Deductions Schedule C Profit and Loss From Business Schedule B Interest and Ordinary Dividends Schedule SE Self-Employment Tax Form 2441 Child and Dependent Care Expenses Schedule 8812 Child Tax Credit Form 8863 Education Credits Form 2106 Employee Business Expenses Form 8283 Non-cash Charitable Contributions My fee for my services is $1000, this includes preparation of all the above forms and my time to sort and organize six boxes...
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