Question
Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet. Tsate Kongia (birthdate 02/14/1954)
Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.
Tsate Kongia (birthdate 02/14/1954) is an unmarried high school principal. Tsate received the following tax documents (which are located on separate tabs in the problem):
- W-2 Form
- Form 1099-INT
- Form 1099-DIV
- Form 1099-B
During the year, Tsate paid the following amounts (all of which can be substantiated):
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On January 28, 2020, Tsate sold land for $180,000 (basis to Tsate of $130,000). The land was purchased 6 years ago as an investment. Tsate received $50,000 as a down payment and the buyer's 10-year note for $130,000. The note is payable at the rate of $13,000 per year plus 8 percent interest. On December 31, 2020, the first of the ten principal and interest payments was received by Tsate.
Tsate also helps support his father, Jay Hawke, who lives in a nearby senior facility. Jay's Social Security number is 433-33-2121. Tsate provides over one-half of Jay's support but Jay also has a pension that paid him income of $14,000 in 2020. His Social Security benefits were $3,200 in 2020. Tsate received a $1,200 EIP in 2020.
Required: Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.
- Make realistic assumptions about any missing data.
- She had health care coverage for the entire year and does not want to make a contribution to the presidential election campaign.
- Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
- If an amount box does not require an entry or the answer is zero, enter "0".
- If required round any decimals to four places and round any dollar amount to the nearest dollar.
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