Communications Decision Making Planning Tax Forms Problem Logan B. Taylor is a widower whose spouse, Sara, died on June 6, 2020. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2022, he had the following receipts: Salary, 80,000 dollars. Interest income. Money market account at Omni Bank, 300 dollars. Savings account at Boone State Bank 1,100 dollars. City of Springfield general purpose bonds, 3,000 dollars. Total 4,400 dollars. Inheritance from Daniel 60,000 dollars. Life insurance proceeds, 200,000 dollars. Amount from sale of St. Louis lot 80,000 dollars. Proceeds from estate sale, 9,000 dollars. Federal income tax refund, for 2021 tax overpayment, 700 dollars. Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2022. Logan also was the designated beneficiary of an insurance policy on Daniels life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2017, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2022, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died. Logans expenditures for 2022 include the following: Medical expenses, including 10,500 dollars for dental, 13,500 dollars. Taxes. State of Missouri income tax, includes withholding during 2022, 4,200 dollars. Property taxes on personal residence, 4,500 dollars. Total 8,700 dollars. Interest on home mortgage, Boone State Bank, 5,600 dollars. Contribution to church, paid pledges for 2022 and 2023, 4,800 dollars. While Logan and his dependents are covered by his employers health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helens implants. Helen is Logans widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2022, on the advice of his pastor, he prepaid his pledge for 2023. Logans household, all of whom he supports, includes the following: Social Security Number Birth Date Logan Taylor (age 48) 123-45-6787 08/30/1974 Helen Taylor (age 70) 123-45-6780 01/13/1952 Asher Taylor (age 23) 123-45-6783 02/18/1999 Mia Taylor (age 22) 123-45-6784 07/16/2000 Enlarge Table Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married. Part 1Tax Computation Using the appropriate forms and schedules, compute Logans income tax for 2022. Federal income tax of $4,200 was withheld from his wages. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Logan does not own and did not use any virtual currency during the year, and he does not want to contribute to the Presidential Election Campaign Fund. Suggested software: ProConnect Tax. Part 2Follow-Up Advice In early 2023, the following take place: Helen decides that she wants to live with one of her daughters and moves to Arizona. Asher graduates from dental school and joins an existing practice in St. Louis. Mia marries, and she and her spouse move in with his parents. Using the insurance proceeds he received on Daniels death, Logan pays off the mortgage on his personal residence. Logan believes that these events may have an effect on his tax position for 2023. Therefore, he requests your advice. Write a letter to Logan explaining in general terms the changes that will occur for tax purposes. Assume that Logans salary and other factors not mentioned (e.g., property and state income taxes) will remain the same