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Use IRS Publication 547 and California FTB Pub. 1034 and California 540A / 540 Booklet to complete this topic.
Complete a Form 4684 for Andrew Martinez (699-03-6021). On August 30, 2007, a tremendous storm caused extensive property damage to Andrew's home. He had originally purchased the home for $90,000. The purchase price was allocated between the land ($18,000) and the building ($72,000). Andrew planted trees and ornamental shrubs on the grounds surrounding his home at a cost of $1,200. The fair market value immediately before the storm was $98,000 ($80,000 for building and $18,000 land); immediately afterwards the value was $70,000 ($52,000 for building and $18,000 for the land). The fair market value of the trees and shrubs immediately before the casualty was $2,000 and immediately afterwards; $100. Insurance of $15,000 is received to cover the total damage. Deduction losses are figured separately for the home and tree shrubs.
Complete a Schedule A using the results from Form 4684. After that prepare a Federal Form 1040 and California Form 540 (including Schedule CA).
Andrew and his girlfriend have been together for 1 year. They do not have any children and are not married. They lived together all of 2007. Her name is Cindy Thomson (SSN: 012-92-8910). Cindy did not work because she was a student for all of 2007. They plan to get married when Cindy graduates from school.
In addition to his earnings, Andrew had the following for 2007:
 | Unemployment compensation $1,373.00 |
| California lottery winnings of $1,785.00. |
Don't worry about his California lottery tickets that he bought. He did not keep track as Andrew hardly ever buys any lottery tickets.
Use this Form W-2:
Have your return prepared and ready to answer the questions.
Option 1: Complete Quiz online.
Instructions to submit quiz successfully: Step-by-Step check list
When prompted for your name, please enter your CTEC or Preparer Number (if you have a number) with your name as follows: First, last name, Number (e.g. John Smith A012345 / John Smith P012345)
Option 2: Complete and mail answer sheet.
If you choose not to complete the quiz by pressing "Start quiz" above, you can print questions and answer sheet to mail to us. If you complete the online quiz, the advantage is that you get an automatic score as apposed to waiting for a response on a manually graded quiz. You can also print the questions and answer sheet and after you answered the questions on paper submit it online by choosing "Start Quiz" above. Please don't sent answer sheet by certified mail.
Print questions Print Answer sheet
Please Note: You must also complete the tax return for this assignment. If you turn in incomplete work, such as purposely not answering the questions regarding the return you prepared, you will not be given credit for the topic.