Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents: During

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Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents: 

a Employee's social security number 467-98-9784 Safe, accurate, FAST! Use Visit the IRS website at RSP file www.irs.gov/


CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional



During the year, Lisa paid the following amounts (all of which can be substantiated): 

Home mortgage interest...............$9,250 

KS state income tax payment for 2017...............$425 

MasterCard interest 550 Life insurance (whole life policy) ...............750 

Property taxes on personal residence...............1,425 

Blue Cross medical insurance premiums...............250 

Other medical expenses...............780 

Income tax preparation fee...............300 

Charitable contributions (in cash)...............730 

Lisa’s sole stock transaction was reported to her on a Form 1099­B:



On January 28, 2018, Lisa sold raw land for $180,000 (basis to Lisa of $135,000). The land was purchased 6 years ago. She received $25,000 as a down payment and the buyer’s 10­year note for $155,000. The note is payable at the rate of $15,500 per year plus 8 percent interest. On January 28, 2019, the first of the ten principal and interest payments is due. Required: Complete Lisa’s federal tax return for 2018. Use Form 1040, Schedule 1, Schedule A, Schedule B, Schedule D, Form 8949, the Qualified Dividends and Capital Gain Tax Worksheet, and Form 6252 to complete this tax return. Make realistic assumptions about any missing data.

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Related Book For  book-img-for-question

Income Tax Fundamentals 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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