Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub
Brush Street, Apt. 52B, Las Vegas, NV 89125. Rebecca is a homemaker and Walt is
a high school teacher. Rebecca's Social Security number is 222-43-7690 and Walt's
is 700-01-0002. Walt's earnings from teaching are:
Earnings from Las Vegas School Dist..................................$50,000
Federal income tax withheld.................................................5,000
State income tax withheld.........................................................0
The Bunges incurred the following expenses during their move from Maine to
Nevada in January of 2013:
Cost of moving furniture ..................................................$4,300
Travel (3,100 miles at $0.24).................................................744
Lodging en route...............................................................150
Meals en route....................................................................90
House-hunting trip before the move.........................................750
Walter's previous job, as a high school teacher in Maine, was only 5 miles from his home. Rebecca was unemployed prior to the move.
The Bunges own a ski condo in Utah. The condo was rented for 40 days during 2013 and used by the Bunges for 10 days. Pertinent information about the condo rental is as follows:
Rental income..................................................$6,000
Mortgage interest................................................4,800
Homeowners' association dues...............................2,000
Utilities............................................................1,000
Maintenance......................................................2,800
Depreciation (assume fully depreciated) .........................0
The above amounts do not reflect any allocation between rental and personal use of the condo. The Bunges are active managers of the condo.
Required:
Complete the Bunge's federal tax return for 2013. Use Form 1040, Schedule E, and Form 3903 on Pages 4-45 through 4-48 to complete their tax return.