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Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: Pension from former employer $39,850 Interest income from Alto National Bank
Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows:
Pension from former employer $39,850
Interest income from Alto National Bank 5,500
Interest income on City of Alto bonds 4,500
Dividends received from IBM stock held for over one year 2,000
Collections on annuity contract he purchased from Great Life Insurance 5,400
Social Security benefits 14,000
Rent income on townhouse 9,000
The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2018.
Cecils 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2018. She used the money to start a new business. Cecil does not charge her interest because she could not afford to pay it, but he does expect to collect the principal eventually. Sarah is living with Cecil until the business becomes profitable. Except for housing, Sarah provides her own support from her business and $1,600 in dividends on stocks that she inherited from her mother.
Other relevant information is presented below:
Expenses on rental townhouse:
Utilities $2,800
Maintenance 1,000
Depreciation 2,000
Real estate taxes 750
Insurance 700
State income taxes paid: $3,500
County personal property taxes paid: $2,100
Payments on estimated 2017 Federal income tax: $5,900
Charitable contributions of cash to Alto Baptist Church: $7,400
Federal interest rate: 6%
Sales taxes paid: $912
Please create a 1040 form from the irs and all schedule forms involved. please use the official irs 1040 form
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