Addison Parker, single (as of 12/31/2021), and age 45, lives at 3218 Columbia Drive, Stockton, CA 95210 (1). She is employed as a regional sales manager by VITA Corporation, a manufacturer and distributor of vitamins and food supplements. Addison was paid an annual salary of $80,000 in 2021 (1). Addisons Form W-2 stated $15,500 in federal income tax withheld (2), $5,146 in social security tax withheld, $1,203.5 in Medicare tax withheld, and $2,000 state income tax withheld (2). Addison itemized deductions on her 2020 Federal income tax return. Addison bought 100 shares of General Electric stock on 1/1/2014 for $100,000. She sold all 100 shares of General Electric stock on 6/1/2021 for $50,000 (3). Addison had a rental house located at 1001 Main Street, Stockton, CA. She bought the rental house on 7/1/2021 for $200,000. Out of the $200,000 purchase price, $100,000 was allocated to the land, and $100,000 was allocated to the building (3). The rental house had the following items of income and expense in 2021. Rental Income $24,000 (2) Property Tax $2,500 (2) Interest on loan on rental house $3,000 (2) Principle repayment on loan on rental house $2,000 (2) Repairs $1,000 (2) Travel to/from rental house to fix property 1000 miles in total for year (2) Insurance $1,500 (2) Fine from City of Stockton for trash on street $500 (2) In addition to the above list, Addison purchased the following items that are to be included in the depreciation expense for the rental house: Rental house. Purchased on 7/1/2021. Air Conditioner purchased 3/1/2021 for $8,000. This is 5 year property. Neither Section 179 nor bonus depreciation was taken on this property. (3) Computer, 75% used for items related to the rental property, for $1,000 on 12/1/2021. This is 3 year property. Addison would like to take Section 179 and/or bonus depreciation if she qualifies. (3) (1) Tools, used 75% of the time on the rental property, for $400 on 3/1/2021. This is 3 year property. Addison would like to take Section 179 and/or bonus depreciation if she qualifies. (3) (1) In addition to what has already been listed, Addison had the following personal expenses in 2021: Medical bills $2,000 (2) Insurance on personal residence $2,000 (2) Property tax on personal residence $3,000 (2) Charitable contribution in cash $5,000 (2) Mortgage interest on personal residence $5,000 (2) Sales tax on personal purchases $1,000 (2) Utilities on personal residence $1,500 (2) Complete Addisons 2021 Federal Income Tax Return, with all appropriate attachments and worksheets. (5)