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Discuss Robinson's Schedule D & E of a 1040 tax return

Discuss the Robinson' family's 2007 tax return. Develop a presentation for the Robinson' to explain their 2007 tax return and based on the completed return for 2007, make suggestions for other tax-savings strategies. My portion of the tax return is to explain Schedule D and E and come up with some tax savings strategies. I have attached a copy of the completed tax return


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Sch D: The deductible loss on the Harrah's stock is clear cut and did produce a tax savings. For future planning purposes, it might be worth the time to review other securities in their portfolio to use any loss to absorb some gain. Although the taxpayers have no limits on capital loss in this tax year, it is simply good planning to review the entire portfolio when transactions are taxable. Current capital loss limitations are $3,000 for all Schedule D transactions.

Sch E rental properties: Both properties are profitable on a cash flow basis, and that is a good thing, but both have reportable losses as a result of depreciation and carryover passive losses from the prior year . The KY property is actively managed and the reportable loss is minimal. The taxpayers should be aware that there is a limit on rental losses for actively managed properties of $25,000. The FL property is ...

Solution Summary

The 600 word solution discusses Sch D and E including limitations and explanations. Tax planning ideas are incorporated in the solution as well as explanations of passive losses, AMT preference items and other tax concepts.