Question
Chegg- I need help for the year 2019. Thanks! Warren and Young Kim are married taxpayers, filing jointly. They live at 777 Kingston Place, Anaheim,
Chegg- I need help for the year 2019. Thanks!
Warren and Young Kim are married taxpayers, filing jointly. They live at 777 Kingston Place, Anaheim, CA 92805. They are both retired. Their SSNs are Warren, 412-34-5670; and Young, 412-34-5671. Their birth dates are as follows: Warren, January 8, 1949; and Young, August 21, 1949.
They own their home, which they paid off in 2010, and another home that they paid for in cash as an investment (Warren considers it his pension). Their investment home was rented for the entire year and is located just one block over at 9021 Jasmine Way. The following income and expense information relates to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations.
Rental income | $ | 27,600 | ||
Real estate taxes | 7,952 | |||
Utilities | 1,603 | |||
Mortgage interest | -0- | |||
Repairs and maintenance | 3,616 | |||
Depreciation | See following information | |||
They placed the rental home into service on March 1, 2013, and of the $515,000 purchase price, $426,000 was allocated to the land.
In addition to the rental, they received interest of $1,086 from American Credit Union and $2,200 from Bank of California. Social Security benefits were $13,910 for Warren and $8,822 for Young, respectively.
Required:
Prepare the Kims federal tax return for 2019. Use Form 1040, Schedule 1, Schedule B, Schedule E, and Form 4562. Assume they do not qualify for any credits (although they may). For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows, while entering in Interest section of Schedule B. Enter zero where applicable.)
Use the appropriate Tax Tables or Tax Rate Schedules and Table 6A-6.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started