Warner and Augustine Robins, both 33 years old, have been married for 9 years. They live at 638 Russell Parkway, Macon, GA 31207. Augustine’s Social Security number is 445-81-1423 and Warner’s is 798-09-8526. Warner is the president of Dragon Lady Corporation located in Macon. The Dragon Lady stock is owned 40 percent by Warner, 40 percent by Augustine, and 20 percent by Warner’s father. Warner’s Dragon Lady wages and income tax withholding for 2016 are:

The Robins’ other income includes interest on a savings account at Georgia National Bank of $450. In April, Warner canceled a small certificate of deposit at Georgia National Bank and had to pay a $320 penalty on this early withdrawal of savings.

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

The tax basis for the donated painting is $25,000 and the painting has been owned by Warner and Augustine for 5 years.

Dragon Lady does not cover health insurance for its employees. In addition to Warner and Augustine’s health insurance premiums shown above, Augustine required surgery which cost $6,720 for which only $3,100 was covered by insurance. Warner had to drive Augustine 258 miles each way to a surgical center.

On January 1, 2016, Warner sold land to Dragon Lady Corporation for $75,000. He acquired the land 5 years ago for $160,000. No Form 1099-B was filed for this transaction.

Dragon Lady Corporation does not have a qualified pension plan or Section 401(k) plan for its employees. Therefore, Warner deposited $11,000 ($5,500 each) into traditional IRA accounts for Augustine and himself (neither are covered by a qualified plan at work).

Required: Complete the Robins’ federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Schedule D, and Form 8949 from Pages 7-43 through 7-50 to complete this tax return. Make realistic assumptions about any missing data and ignore any alternative minimum tax. Do not complete Form 8283, which is used when large noncash donations are made to charity.