Taxation of Property Transactions

Purpose: The purpose of this is not merely to learn how to fill-informs but to enable you to meet the following goals:? Calculate individual income tax.? Identify and calculate business deductions and losses.? Apply the elements of taxation of property transactions, includingbasis, cost recovery, gains and losses and non-recognitiontransactions.Task: In order to successfully complete this assignment, you must.? Prepare the 2020 federal income tax returns, including all required formsand schedules, as needed for all members of the Lopez family.? Throughout the return you will see instances where a line on the 1040,indicates to attach either a schedule or a specific form if required. Youshould review the information and instructions to determine and if requiredinclude it as part of a completed return. You can ignore the requirement toattach a W-2.? When the form contains the phrase (attach schedule), without identifying aspecific form or schedule, this indicates that the amount on the form needs tobe further detailed but there is no specific form on which to do so.In these cases, you should prepare a schedule that does so, such as in thefollowing example:Professional Fees $1,200Auto expenses 300Miscellaneous 120Total, Form 1040, Schedule A, line 11 $1,620? Be sure to attach a list of any positions or conclusions that you made in thepreparation of the return. These will assist in the grading of the return andwould be part of the expectations at a firm to be included in the client file.Assume that the return is being filed on time.