Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. $2022$ Federal Income Tax Information

$2022$ Federal Tax Rate Schedules

Schedule X$-$Single

Schedule Y$-1-$Married Filing Jointly or Qualifying Widow$($er$)$

Schedule Y$-2-$Married Filing Separately

Schedule Z$-$Head of Household

Wendy O$$Neil $($SSN $412-34-5670),$ who is single, worked full time as the director at a local charity. She resides at $1501$ Front Street, Highland, AZ $85711.$ For the year, she had the following reported on her W$-2$:

Wages $ $46,200$

Federal withholding $7,930$

Social security wages $46,200$

Social security withholding $2,864$

Medicare withholding $670$

State withholding $2,310$

Other information follows:

$1099-$INT New Bank $ $300$

$1099-$DIV Freeze, Incorporated Ordinary dividends $400$

Qualified dividends $400$

Wendy had the following itemized deductions:

State income tax withholding $ $2,310$

State income tax paid with the $2021$ return $100$

Real estate tax $2,600$

Mortgage interest $8,060$

Wendy inherited a beach house in North Carolina $($rental only$)$ on January $2,2022,$ from her father. The FMV at the father$$s death was $$850,000.$ He had purchased the house $20$ years earlier for $$100,000.$

Summer rental income $ $45,000$

Repairs $2,500$

Real estate taxes $6,500$

Utilities $2,400$

Depreciation $($Calculate$)$

On December $29,2022,$ Wendy properly conducted a like$-$kind exchange for rental real estate located at $128$ Lake Boulevard, Hot Town, AZ$.$ She received rental property with an FMV of $$950,000$ and $$20,000$ cash in exchange for the North Carolina beach house. The Arizona property did not produce any income until $2023.$

Prepare Form $1040$ for Wendy for $2022.$ The taxpayer had qualifying health care coverage at all times during the tax year. You will also need Schedule $1,$ Schedule A$,$ Schedule E$,$ Form $4562,$ Form $4797,$ Form $8824,$ and Form $8995.$ Use the appropriate Table $6$A$-6$ and Tax Tables or Tax Rate Schedules.