99. Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65.Alton and Clair are both retired, and during 2012, they received Social Security benefits of $10,000. Altons Social Security number is 111-11-1111, and Clairs is 123-45-6789.They reside at 210 College Drive, Columbia, SC 29201.Alton, who retired on January 1, 2012, receives benefits from a qualified pension plan of $750 a month for life. His total contributions to the plan (none of which were deductible) were $68,250. In January 2012, he received a bonus of $2,000 from his former employer for service performed in 2011. Although the former employer accrued the bonus in 2011, it was not paid until 2012.Clair, who retired on December 31, 2011, started receiving benefits of $900 a month on January 1, 2012. Her contributions to the qualified pension plan (none of which were deductible) were $74,100.Clair had casino winnings for the year of $4,500 and casino losses of $2,100, whileAlton won $17,000 on a $1 lottery ticket.On September 27, 2012, Alton and Clair received a 10% stock dividend on 600 shares of stock they owned. They had bought the stock on March 5, 2005, for $20 a share. OnDecember 16, 2012, they sold the 60 dividend shares for $55 a share.Tax Return ProblemOn October 10, 2012, Clair sold the car she had used in commuting to and from work for $17,000. She had paid $31,000 for the car in 2006.On July 14, 2004, Alton and Clair received a gift of 1,000 shares of stock from their son, Thomas. Thomass basis in the stock was $35 a share (fair market value at the date of gift was $25). No gift tax was paid on the transfer. Alton and Clair sold the stock onOctober 8, 2012, for $24 a share.On May 1, 2012, Clairs mother died, and Clair inherited her personal residence. InFebruary 2012, her mother had paid the property taxes for 2012 of $2,100. The residence had a fair market value of $235,000 and an adjusted basis to the mother of $160,000 on the date of her death. Clair listed the house with a real estate agent, who estimated it was worth $240,000 as of December 31, 2012.Clair received rent income of $6,000 on a beach house she inherited three years ago from her Uncle Chuck. She had rented the property for one week during the July 4 weekend and one week during the Thanksgiving holiday. Uncle Chucks adjusted basis in the beach house was $150,000, and its fair market value on the date of his death was $240,000. Clair