Carl Baker is another client of ABC Tax Firm and is a 63-year old widower that has provided the following information to you. As the tax preparer, interpret the information provided and construct Carls 2019 Federal Tax Return.

Carl had income for 2018 as follows:

• Pension from former employer = $39,850
• Interest income from Bean Bank = $5,500
• Interest income on City of Bean bonds = $4,500
• Dividends received from Costco stock held for over one year = $2,000
• Social Security benefits = $14,000
• Rental income on house = $9,000
• Carl has an annuity which cost $46,800. He was expected to receive a total of 260 monthly payments of $450. So far, Carl has received 22 payments so far.
• Carls daughter, Sasha (who is 40 years old), borrowed $60,000 from Carl on January 5, 20XX and used the proceeds to form a new business. Sasha is living with Carl until the business is money/profitable. Except for housing, Sasha provides her own support from her business and $1,600 in dividends on stocks she received/inherited from her mother.

Other relevant information:

• Utilities = $2,900
• Maintenance costs - $2,000
• Depreciation = $3,000
• Real estate taxes = $850
• Insurance = $800
• State income taxes paid = $3,600
• Country personal property taxes paid = $2,200
• Payments on estimated 20XX FIT = $6,000
• Charitable contributions of cash to Bean Church = $7,500
• Federal interest rate 6%
• Sales taxes paid = $1,012