47. Mason Phillips, age 45, and his wife, Alyssa, live at 230 Wood Lane, Salt Lake City, UT 84101. Mason's Social Security number is 111-11-1111. Alyssa's Social Security number is 123-45-6789. Mason and Alyssa are cash basis taxpayers and report the following items for 2023: Tax Computation Problem - Salary of $140,000. - Collection of unpaid rent from a prior year of $6,000. - Rental income of $60,000 (not including prior year unpaid rent; the rental property is managed by the Phillips). - Rental expenses of $33,000. - Uncollected rent (bad debts) of $4,000. - Casualty loss on rental property of $10,000. - Sale of 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago. - Personal casualty loss (from one event) of $3,000; not in a Federally declared disaster area. - Theft loss of $8,000 on a painting held for investment. - Other itemized deductions of $21,000. - Federal income tax withheld of $3,000. Compute Mason and Alyssa's 2023 Federal income tax payable (or refund due). The challenges of this return are the investment casualty loss and the rental casualty loss -- you will need to start each of these on a separate Form 4684 , page 2 , Part 1 - B. The Phillips had no virtual currency transactions. The Phillips did not dispose of any investments in a qualified opportunity fund during the year. Rent collected from prior year must be included in gross income because Mason and Alyssa are cash basis taxpayers. List as "Other Income" on Schedule 1 and identify as rental income collection from 2022. Assume no payments were made for the rental property that would require the filing of a 1099 and the property was single household and rented for 365 days. In determining QBI, all deductions attributable to a trade or business are taken into account and the Schedule E net income plus back rental income. The ordinary loss from the sale of the Section 1244 stock starts on Part II of Form 4797. The STCL from the Section 1244 stock sale begins on Form 8949 Part I -- assume it was reported to the IRS on a 1099B Forms =1040,24684( pg 2), 4797, 8949, 8995 Schedules =1,A,D,E