$1.$ Linsay Adams $($unmarried$)$ is employed as a nurse practitioner at the main office of Canal Street Crisis Center. Linsay lives in a home she purchased $15$ years ago with her father Harold Adamsfor the entire year. Harold is disabled and receives $$3,950$ of income each year housesitting for neighbors. Harold is able to save these funds because Linsay provides all of Harold$$s support. Linsay also supports her $19-$year$-$old son Connor. Connor is a full$-$time student and in his first year at UTEP.

Linsay provided the following additional information:

$$ The Adams$$ live at $388$ Spotted Yucca Dr$,$ El Paso, TX $79904.$

$$ Linsay$$s birthday is $2/26/1974$ and her Social Security number is $452-71-7054.$

$$ Harold$$s birthday is $10/30/1950$ and his Social Security number is $455-89-2882.$

$$ Connor$$s birthday is $2/12/2004$ and his Social Security number is $442-92-2227$

$$ Linsay does not have any foreign bank accounts or trusts, nor did she have any transactions

with virtual currency.

$$ A $$500$ nonrefundable credit for other dependents is available for each qualifying dependent

over the age of $17($line $19$ Form $1040).$ You will NOT need to use Schedule $8812.$

$2.$ Linsay received a Form W$-2$ Canal Street Crisis Center $($her employer$)$ that:

Wages tips & other compensation $$86435$ Federal Income tax withheld $$10565$

Social Security Wages $$86435$ Social security withheld $$5359$

Medicare wages and tips $$86435$ Medicare Tax withheld $$1253$

$3.$ Linsay did some accounting$/$bookkeeping work on the side for some extra earnings. See the $1099-$NEC attached for the bookkeeping income she had from the Fellini Film Caf$.$ She also had some expenses associated with this side business. She did not pay any contract labor that would require her to file form $1099$ and she uses the cash method of accounting for this business.

Nonemployee compensation $$5920$

The expenses are as follows:

Office Expense $$2,030$

Business Insurance $$1,300$

Linsay$$s vehicle $($Honda Passport$)$ is used for personal and business. She started

using her vehicle for her business on $1/1/2023.$ She tracked her mileage and

documented it$.$ She wants to take the mileage expense in his business and NOT

actual vehicle expenses.

Total business mileage for $2023$: $872$

Personal miles: $868$

Commuting miles: $0$

$4.$ Linsay$$s aunt Louise died on June $20,2015,$ leaving Linsay her entire estate. Included in the estate was Louise$$s house $(1331$ Raven Loop, El Paso, TX $79901).$ Louise$$s basis in the residence was $$198,000.$ The fair market value of the residence on the date of her death in $2015$ was $$322,000.$ Linsay has used the property as a rental property since she received it and has managed it herself, however she is not a real estate professional. To compute the depreciation on the house, Linsay has allocated $$29,000$ of the property$$s basis to the land and the remaining amount to the house. She has depreciated the house using the MACRS rules and conventions applicable to residential real estate. The house was occupied during the entire year. She did not pay any contract labor that would require form $1099$ for work related to this rental house. This property does not qualify for the Qualified Business Income Deduction. She incurred the following expenses related to the rental house during the year:

Linsay collected $$30,200$ rent in $2023$

She incurred the following expenses related to the rental house during the year:

Property Insurance $$2,820$

Property Taxes $$5,994$

Repairs $$6,780$

Utilities $$2,409$

Depreciation To be computed