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At the beginning of 2 0 1 8 , Donna harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in

At the beginning of 2018, Donna harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 000-00-1111. She sold her house in California on August 10 for $500,000. She paid a $14,000 sales commission. The house was acquired on March 23,1987, for $140,000.The cost of transporting her household goods and personal effects from California to Orlando amounted to $2,350. To travel from California to Florida, she paid travel and lodging costs of $370 and $100 for meals. On July 15, she purchased a house for $270,000 on 1225 Minnie Lane in Orlando. To purchase the house, she incurred a 20-year mortgage for $170,000. To obtain the loan, she paid points of $3,400. The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year she paid $3,600 for property taxes.Salary from Farah Movie, Inc. $30,000Salary from ocala Production, Inc. $70,000Federal income taxes withheld by Farah $6,000Federal income taxes withheld by ocala $22,000FICA taxes withheld by Farah $2,295FICA taxes withheld by ocala $5,355Interest income from Sun National bank $1,800dividend income $10,000Interest paid for mortgage:Home in California $6,780Home in Orlando $3,800Property taxes paid in California $4,100Sales taxes paid in California and Florida State $3,125income taxes paid in California $2,900Donna was born on May 15,1962.The zip code for her Florida address is 33442.Donna's federal income tax for the previous tax year was only $5000The $10,000 Dividend Income is to be treated as QUALIFYING Dividend Income.Here is some clarifying information for you:Social Security (OASDI) Taxes were withheld by Farah in accordance with 2014 requirementsMedicare Taxes were withheld by Farah in accordance with 2014 requirementsSocial Security (OASDI) Taxes withheld by Ocala in accordance with 2014 requirements Medicare Taxes withheld by Ocala in accordance with 2014 requirements Property Taxes Summary and Clarification:Donna Harp paid $4100 of property taxes to the California taxing authorities.Donna also wrote a check to the Florida taxing authorities for $3600 to cover the property taxes on the Florida property. It is crucial for you to understand that although Donna paid this $3600 property tax bill, she only bought the Florida house on July 15 and the seller of the house that lived in it from January - July 15 paid Donna $1950 to cover the real estate taxes for that period. That is what the book means when it says "The $3600 of property taxes for the house on Orlando Florida were prorated with 1950 being apportioned to the seller and 1650 to the buyer.Prepare form 1040 including schedules a, B and D. Prepare form 3903 and form 8960.

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