Comprehensive Problem 4 1 Rebecca and Walter Bunge have been married for 5 years They live at 883 Scrub Brush Street, Apt 52B, Las Vegas, NV 89125 Rebecca is a homemaker and Walt is a high school teacher Rebecca's Social Security number is 222 43 7690 and Walt's is 700 01 0002 Walt's earnings from teaching are Earnings from Las Vegas School Dist $50,400 Federal income tax withheld 5,000 State income tax withheld 0 The Bunges incurred the following expenses during their move from Maine to Nevada in January of 2015 Cost of moving furniture $4,200 Travel (3,166 miles at $0 23) 728 Lodging en route 250 Meals en route 90 House hunting trip before the move 750 You may assume that the taxpayers will meet the must work at least 39 weeks at the new job location during the 12 months following the move test Walter's previous job, as a high school teacher in Maine, was only 5 miles from his home Rebecca was unemployed prior to the move The Bunges own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719 The condo was rented for 185 days during 2015 and used by the Bunges for 15 days Pertinent information about the condo rental is as follows Rental income $16,000 Mortgage interest 8,800 Homeowners' association dues 5,000 Utilities 1,000 Maintenance 3,800 Depreciation (assume fully depreciated) 0 The above amounts do not reflect any allocation between rental and personal use of the condo The Bunges are active managers of the condo Click here to access the tax table to use for this problem Required Complete the Bunge's federal tax return for 2015 Use Form 1040, Schedule E, and Form 3903 to complete their tax return If an amount box does not require an entry or the answer is zero, enter 0 Note If required, enter a loss as a negative number on the tax form Do not enter deductions as negative numbers Form 1040 Department of the TreasuryInternal Revenue Service (99) U S Individual Income Tax Return 2015 OMB No 1545 0074 IRS Use Only For the year Jan 1Dec 31, 2015, or other tax year beginning , 2015, ending , 20 See separate instructions Your first name and initial Walter Last name Bunge Your social security number 700 01 0002 If a joint return, spouse's first name and initial Rebecca Last name Bunge Spouse's social security number 222 43 7690 Home address (number and street) If you have a P O box, see instructions 883 Scrub Brush Street Apt no 52 B Make sure the SSN(s) above and on line 6c are correct City, town or post office, state, and ZIP code If you have a foreign address, also complete spaces below (see instructions) Las Vegas, NV 89125 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund Checking a box below will not change your tax or refund You Spouse Foreign country name Foreign province state country Foreign postal code Filing Status Single Married filing jointly (even if only one had income) Married filing separately Head of household (with qualifying person) Qualifying widow(er) with dependent child Exemptions 6a Yes No Yourself If someone can claim you as a dependent, do not check box 6a Boxes checked on 6a and 6b b Yes No Spouse No of children on 6c who lived with you c Dependents (2) Dependent's social security number (3) Dependent's relationship to you (4) If child under age 17 qualifying for child tax credit (see instructions) (1) Firstname Lastname did not live with you due to divorce or separation (see instructions) If more than four dependents, see instructions and check here Dependents on 6c not entered above Add numbers on lines above d Total number of exemptions claimed Income Attach Form(s) W 2 here Also attach Forms W 2G and 1099 R if tax was withheld If you did not get a W 2, see instructions 7 Wages, salaries, tips, etc Attach Form(s) W 2 7 8a Taxable interest Attach Schedule B if required 8a b Tax exempt interest Do not include on line 8a 8b 9a Ordinary dividends Attach Schedule B if required 9a b Qualified dividends 9b 10 Taxable refunds, credits, or offsets of state and local income taxes 10 11 Alimony received 11 12 Business income or (loss) Attach Schedule C or C EZ 12 13 Capital gain or (loss) Attach Schedule D if required If not required, check here 13 14 Other gains or (losses) Attach Form 4797 14 15a IRA distributions 15a b Taxable amount 15b 16a Pensions and annuities 16a b Taxable amount 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc Attach Schedule E 17 18 Farm income or (loss) Attach Schedule F 18 19 Unemployment compensation 19 20a Social security benefits 20a b Taxable amount 20b 21 Other income List type and amount 21 22 Combine the amounts in the far right column for lines 7 through 21 This is your total income 22 Adjusted Gross Income 23 Educator expenses 23 24 Certain business expenses of reservists, performing artists, and fee basis government officials Attach Form 2106 or 2106 EZ 24 25 Health savings account deduction Attach Form 8889 25 26 Moving expenses Attach Form 3903 26 27 Deductible part of self employment tax Attach Schedule SE 27 28 Self employed SEP, SIMPLE, and qualified plans 28 29 Self employed health insurance deduction 29 30 Penalty on early withdrawal of savings 30 31a Alimony paid b Recipient's SSN 31a 32 IRA deduction 32 33 Student loan interest deduction 33 34 Tuition and fees Attach Form 8917 34 35 Domestic production activities deduction Attach Form 8903 35 36 Add lines 23 through 35 36 37 Subtract line 36 from line 22 This is your adjusted gross income 37 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat No 11320B Form 1040 (2015) Form 1040 (2015) Page 2 38 Amount from line 37 (adjusted gross income) 38 Tax and Credits 39a Check if You were born before January 2, 1951, Blind Spouse was born before January 2, 1951, Blind Total boxes checked 39a b If your spouse itemizes on a separate return or you were a dual status alien, check here 39b Standard Deduction for People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions All others Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,250 40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) 40 41 Subtract line 40 from line 38 41 42 Exemptions If line 38 is $154,950 or less, multiply $4,000 by the number on line 6d Otherwise, see instructions 42 43 Taxable income Subtract line 42 from line 41 If line 42 is more than line 41, enter 0 43 44 Tax (see instructions) Check if any from a Form(s) 8814 b Form 4972 c 44 45 Alternative minimum tax (see instructions) Attach Form 6251 45 46 Excess advance premium tax credit repayment Attach Form 8962 46 47 Add lines 44, 45, and 46 47 48 Foreign tax credit Attach Form 1116 if required 48 49 Credit for child and dependent care expenses Attach Form 2441 49 50 Education credits from Form 8863, line 19 50 51 Retirement savings contributions credit Attach Form 8880 51 52 Child tax credit Attach Schedule 8812, if required 52 53 Residential energy credit Attach Form 5695 53 54 Other credits from Form a 3800 b 8801 c 54 55 Add lines 48 through 54 These are your total credits 55 56 Subtract line 55 from line 47 If line 55 is more than line 47, enter 0 56 Other Taxes 57 Self employment tax Attach Schedule SE 57 58 Unreported social security and Medicare tax from Form a 4137 b 8919 58 59 Additional tax on IRAs, other qualified retirement plans, etc Attach Form 5329 if required 59 60a Household employment taxes from Schedule H 60a b First time homebuyer credit repayment Attach Form 5405 if required 60b 61 Health care individual responsibility (see instructions) Full year coverage 61 62 Taxes from a Form 8959 b Form 8960 c Instructions enter code(s) 62 63 Add lines 56 through 62 This is your total tax 63 Payments 64 Federal income tax withheld from Forms W 2 and 1099 64 If you have a qualifying child, attach Schedule EIC 65 2015 estimated tax payments and amount applied from 2014 return 65 66a Earned income credit (EIC) 66a b Nontaxable combat pay election 66b 67 Additional child tax credit Attach Schedule 8812 67 68 American opportunity credit from Form 8863, line 8 68 69 Net premium tax credit Attach Form 8962 69 70 Amount paid with request for extension to file 70 71 Excess social security and tier 1 RRTA tax withheld 71 72 Credit for federal tax on fuels Attach Form 4136 72 73 Credits from Form a 2439 b Reserved c 8885 d 73 74 Add lines 64, 65, 66a, and 67 through 73 These are your total payments 74 Refund 75 If line 74 is more than line 63, subtract line 63 from line 74 This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you If Form 8888 is attached, check here 76a Direct deposit See instructions b Routing number c Type Checking Savings d Account number 77 Amount of line 75 you want applied to your 2016 estimated tax 77 Amount You Owe 78 Amount you owe Subtract line 74 from line 63 For details on how to pay, see instructions 78 79 Estimated tax penalty (see instructions) 79 Third Party Designee Do you want to allow another person to discuss this return with the IRS (see instructions) Yes Complete below No Designee's name Phone no Personal identification number (PIN) Sign Here Joint return See instructions Keep a copy for your records Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Your signature Date Your occupation Teacher Daytime phone number Spouse's signature If a joint return, both must sign Date Spouse's occupation Homemaker If the IRS sent you an Identity Protection PIN, enter it here (see inst ) Paid Preparer Use Only Print Type preparer's name Preparer's signature Date Check if self employed PTIN Firm's name Firm's EIN Firm's address Phone no www irs gov form1040 Form 1040 (2015) SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99) Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc ) Attach to Form 1040, 1040NR, or Form 1041 Information about Schedule E and its separate instructions is at www irs gov schedulee OMB No 1545 0074 2015 Attachment Sequence No 13 Name(s) shown on return Walter and Rebecca Bunge Your social security number 700 01 0002 Part I Income or Loss From Rental Real Estate and Royalties Note If you are in the business of renting personal property, use Schedule C or C EZ (see instructions) If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40 A Did you make any payments in 2015 that would require you to file Form(s) 1099 (see instructions) Yes No B If Yes, did you or will you file required Forms 1099 Yes No 1a Physical address of each property (street, city, state, ZIP code) A 123 Buncombe Lane, Brian Head, UT 84719 B C 1b Type of Property (from list below) 2 For each rental real estate property listed above, report the number of fair rental and personal use days Check the QJV box only if you meet the requirements to file as a qualified joint venture See instructions Fair Rental Days Personal Use Days QJV A 1 2 3 4 5 6 7 8 A B B C C Type of Property 1 Single Family Residence 3 Vacation Short Term Rental 5 Land 7 Self Rental 2 Multi Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income Properties A B C 3 Rents received 3 4 Royalties received 4 Expenses 5 Advertising 5 6 Auto and travel (see instructions) 6 7 Cleaning and maintenance 7 8 Commissions 8 9 Insurance 9 10 Legal and other professional fees 10 11 Management fees 11 12 Mortgage interest paid to banks, etc (see instructions) 12 13 Other interest 13 14 Repairs 14 15 Supplies 15 16 Taxes 16 17 Utilities 17 18 Depreciation expense or depletion 18 19 Other (list) Homeowners' Association Dues 19 20 Total expenses Add lines 5 through 19 20 21 Subtract line 20 from line 3 (rents) and or 4 (royalties) If result is a (loss), see instructions to find out if you must file Form 6198 21 ( ) 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) 22 ( ) ( ) ( ) 23a Total of all amounts reported on line 3 for all rental properties 23a b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties 23c d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported on line 20 for all properties 23e 24 Income Add positive amounts shown on line 21 Do not include any losses 24 25 Losses Add royalty losses from line 21 and rental real estate losses from line 22 Enter total losses here 25 ( ) 26 Total rental real estate and royalty income or (loss) Combine lines 24 and 25 Enter the result here If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18 Otherwise, include this amount in the total on line 41 on page 2 26 ( ) For Paperwork Reduction Act Notice, see the separate instructions Cat No 11344L Schedule E (Form 1040) 2015 Form 3903 Department of the Treasury Internal Revenue Service (99) Moving Expenses Information about Form 3903 and its instructions is available at www irs gov form3903 Attach to Form 1040 or Form 1040NR OMB No 1545 0074 2015 Attachment Sequence No 170 Name(s) shown on return Walter Rebecca Bunge Your social security number 700 01 0002 Before you begin See the Distance Test and Time Test in the instructions to find out if you can deduct your moving expenses See Members of the Armed Forces in the instructions, if applicable 1 Transportation and storage of household goods and personal effects (see instructions) 1 2 Travel (including lodging) from your old home to your new home (see instructions) Do not include the cost of meals 2 3 Add lines 1 and 2 3 4 Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W 2 (wages) This amount should be shown in box 12 of your Form W 2 with code P 4 5 Is line 3 more than line 4 No You cannot deduct your moving expenses If line 3 is less than line 4, subtract line 3 from line 4 and include the result on Form 1040, line 7, or Form 1040NR, line 8 Yes Subtract line 4 from line 3 Enter the result here and on Form 1040, line 26, or Form 1040NR, line 26 This is your moving expense deduction 5 For Paperwork Reduction Act Notice, see your tax return instructions Cat No 12490K Form 3903 (2015) Form 8582 Department of the Treasury Internal Revenue Service (99) Passive Activity Loss Limitations See separate instructions Attach to Form 1040 or Form 1041 Information about Form 8582 and its instructions is available at www irs gov form8582 OMB No 1545 1008 2015 Attachment Sequence No 88 Name(s) shown on return Walter and Rebecca Bunge Identifying number 700 01 0002 Part I 2015 Passive Activity Loss Caution Complete Worksheets 1, 2, and 3 before completing Part I Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions ) 1a Activities with net income (enter the amount from Worksheet 1, column (a)) 1a b Activities with net loss (enter the amount from Worksheet 1, column (b)) 1b ( ) c Prior years unallowed losses (enter the amount from Worksheet 1, column (c)) 1c ( ) d Combine lines 1a, 1b, and 1c 1d ( ) Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a) 2a ( ) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) 2b ( ) c Add lines 2a and 2b 2c ( ) All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)) 3a b Activities with net loss (enter the amount from Worksheet 3, column (b)) 3b ( ) c Prior years unallowed losses (enter the amount from Worksheet 3, column (c)) 3c ( ) d Combine lines 3a, 3b, and 3c 3d 4 Combine lines 1d, 2c, and 3d If this line is zero or more, stop here and include this form with your return all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c Report the losses on the forms and schedules normally used 4 ( ) If line 4 is a loss and Line 1d is a loss, go to Part II Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15 Caution If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III Instead, go to line 15 Part II Special Allowance for Rental Real Estate Activities With Active Participation Note Enter all numbers in Part II as positive amounts See instructions for an example 5 Enter the smaller of the loss on line 1d or the loss on line 4 5 6 Enter $150,000 If married filing separately, see instructions 6 7 Enter modified adjusted gross income, but not less than zero (see instructions) 7 Note If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter 0 on line 10 Otherwise, go to line 8 8 Subtract line 7 from line 6 8 9 Multiply line 8 by 50 ( 5) Do not enter more than $25,000 If married filing separately, see instructions 9 10 Enter the smaller of line 5 or line 9 10 If line 2c is a loss, go to Part III Otherwise, go to line 15 Part III Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note Enter all numbers in Part III as positive amounts See the example for Part II in the instructions 11 Enter $25,000 reduced by the amount, if any, on line 10 If married filing separately, see instructions 11 12 Enter the loss from line 4 12 13 Reduce line 12 by the amount on line 10 13 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 14 Part IV Total Losses Allowed 15 Add the income, if any, on lines 1a and 3a and enter the total 15 16 Total losses allowed from all passive activities for 2015 Add lines 10, 14, and 15 See instructions to find out how to report the losses on your tax return 16 For Paperwork Reduction Act Notice, see instructions Cat No 63704F Form 8582 (2015)

Question

Comprehensive Problem 4 1 Rebecca and Walter Bunge have been married for 5 years  They live at 883 Scrub Brush Street, Apt  52B, Las Vegas, NV 89125  Rebecca is a homemaker and Walt is a high school teacher  Rebecca's Social Security number is 222 43 7690 and Walt's is 700 01 0002  Walt's earnings from teaching are  Earnings from Las Vegas School Dist  $50,400 Federal income tax withheld 5,000 State income tax withheld 0 The Bunges incurred the following expenses during their move from Maine to Nevada in January of 2015  Cost of moving furniture $4,200 Travel (3,166 miles at $0 23) 728 Lodging en route 250 Meals en route 90 House hunting trip before the move 750 You may assume that the taxpayers will meet the  must work at least 39 weeks at the new job location during the 12 months following the move  test  Walter's previous job, as a high school teacher in Maine, was only 5 miles from his home  Rebecca was unemployed prior to the move  The Bunges own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719  The condo was rented for 185 days during 2015 and used by the Bunges for 15 days  Pertinent information about the condo rental is as follows  Rental income $16,000 Mortgage interest 8,800 Homeowners' association dues 5,000 Utilities 1,000 Maintenance 3,800 Depreciation (assume fully depreciated) 0 The above amounts do not reflect any allocation between rental and personal use of the condo  The Bunges are active managers of the condo  Click here to access the tax table to use for this problem  Required  Complete the Bunge's federal tax return for 2015  Use Form 1040, Schedule E, and Form 3903 to complete their tax return  If an amount box does not require an entry or the answer is zero, enter  0   Note  If required, enter a  loss  as a negative number on the tax form  Do not enter deductions as negative numbers  Form 1040 Department of the TreasuryInternal Revenue Service (99) U S  Individual Income Tax Return 2015 OMB No  1545 0074 IRS Use Only For the year Jan  1Dec  31, 2015, or other tax year beginning , 2015, ending , 20 See separate instructions  Your first name and initial Walter Last name Bunge Your social security number 700 01 0002 If a joint return, spouse's first name and initial Rebecca Last name Bunge Spouse's social security number 222 43 7690 Home address (number and street)  If you have a P O  box, see instructions  883 Scrub Brush Street Apt  no  52 B Make sure the SSN(s) above and on line 6c are correct  City, town or post office, state, and ZIP code  If you have a foreign address, also complete spaces below (see instructions)  Las Vegas, NV 89125 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund  Checking a box below will not change your tax or refund  You Spouse Foreign country name Foreign province state country Foreign postal code Filing Status Single Married filing jointly (even if only one had income) Married filing separately Head of household (with qualifying person) Qualifying widow(er) with dependent child Exemptions 6a Yes No Yourself  If someone can claim you as a dependent, do not check box 6a                                                                 Boxes checked on 6a and 6b b Yes No Spouse                                                                                 No  of children on 6c who  lived with you c Dependents  (2) Dependent's social security number (3) Dependent's relationship to you (4) If child under age 17 qualifying for child tax credit (see instructions) (1) Firstname Lastname did not live with you due to divorce or separation (see instructions) If more than four dependents, see instructions and check here Dependents on 6c not entered above Add numbers on lines above d Total number of exemptions claimed                                                           Income Attach Form(s) W 2 here  Also attach Forms W 2G and 1099 R if tax was withheld  If you did not get a W 2, see instructions  7 Wages, salaries, tips, etc  Attach Form(s) W 2                                                               7 8a Taxable interest  Attach Schedule B if required                                                               8a b Tax exempt interest  Do not include on line 8a                   8b 9a Ordinary dividends  Attach Schedule B if required                                                             9a b Qualified dividends                                                               9b 10 Taxable refunds, credits, or offsets of state and local income taxes                                 10 11 Alimony received                                                                                                             11 12 Business income or (loss)  Attach Schedule C or C EZ                                               12 13 Capital gain or (loss)  Attach Schedule D if required  If not required, check here 13 14 Other gains or (losses)  Attach Form 4797                                                                       14 15a IRA distributions                       15a b Taxable amount     15b 16a Pensions and annuities             16a b Taxable amount     16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc  Attach Schedule E 17 18 Farm income or (loss)  Attach Schedule F                                                               18 19 Unemployment compensation                                                               19 20a Social security benefits 20a b Taxable amount     20b 21 Other income  List type and amount                                                 21 22 Combine the amounts in the far right column for lines 7 through 21  This is your total income                                                                               22 Adjusted Gross Income 23 Educator expenses                                                                 23 24 Certain business expenses of reservists, performing artists, and fee basis government officials  Attach Form 2106 or 2106 EZ 24 25 Health savings account deduction  Attach Form 8889           25 26 Moving expenses  Attach Form 3903                                     26 27 Deductible part of self employment tax  Attach Schedule SE 27 28 Self employed SEP, SIMPLE, and qualified plans                   28 29 Self employed health insurance deduction                           29 30 Penalty on early withdrawal of savings                         30 31a Alimony paid b Recipient's SSN          31a 32 IRA deduction                                                                       32 33 Student loan interest deduction                                           33 34 Tuition and fees  Attach Form 8917                                   34 35 Domestic production activities deduction  Attach Form 8903 35 36 Add lines 23 through 35                                                                                     36 37 Subtract line 36 from line 22  This is your adjusted gross income                       37 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions  Cat  No  11320B Form 1040 (2015) Form 1040 (2015) Page 2 38 Amount from line 37 (adjusted gross income) 38 Tax and Credits 39a Check if    You were born before January 2, 1951, Blind  Spouse was born before January 2, 1951, Blind    Total boxes checked 39a b If your spouse itemizes on a separate return or you were a dual status alien, check here 39b                                                                                                     Standard Deduction for People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions  All others  Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,250 40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) 40 41 Subtract line 40 from line 38                                                                                 41 42 Exemptions  If line 38 is $154,950 or less, multiply $4,000 by the number on line 6d  Otherwise, see instructions                                                                     42 43 Taxable income  Subtract line 42 from line 41  If line 42 is more than line 41, enter  0   43 44 Tax (see instructions)  Check if any from  a Form(s) 8814 b Form 4972 c       44 45 Alternative minimum tax (see instructions)  Attach Form 6251                               45 46 Excess advance premium tax credit repayment  Attach Form 8962                               46 47 Add lines 44, 45, and 46                                                                                           47 48 Foreign tax credit  Attach Form 1116 if required                           48 49 Credit for child and dependent care expenses  Attach Form 2441 49 50 Education credits from Form 8863, line 19                               50 51 Retirement savings contributions credit  Attach Form 8880       51 52 Child tax credit  Attach Schedule 8812, if required                 52 53 Residential energy credit  Attach Form 5695                       53 54 Other credits from Form  a 3800 b 8801 c          54 55 Add lines 48 through 54  These are your total credits                                             55 56 Subtract line 55 from line 47  If line 55 is more than line 47, enter  0                  56 Other Taxes 57 Self employment tax  Attach Schedule SE                                                                   57 58 Unreported social security and Medicare tax from Form  a 4137 b 8919             58 59 Additional tax on IRAs, other qualified retirement plans, etc  Attach Form 5329 if required 59 60a Household employment taxes from Schedule H                                                       60a b First time homebuyer credit repayment  Attach Form 5405 if required                   60b 61 Health care  individual responsibility (see instructions) Full year coverage 61 62 Taxes from  a Form 8959 b Form 8960 c Instructions  enter code(s)             62 63 Add lines 56 through 62  This is your total tax                                                           63 Payments 64 Federal income tax withheld from Forms W 2 and 1099             64 If you have a qualifying child, attach Schedule EIC  65 2015 estimated tax payments and amount applied from 2014 return 65 66a Earned income credit (EIC)                                                   66a b Nontaxable combat pay election             66b 67 Additional child tax credit  Attach Schedule 8812                       67 68 American opportunity credit from Form 8863, line 8                 68 69 Net premium tax credit  Attach Form 8962                               69 70 Amount paid with request for extension to file                       70 71 Excess social security and tier 1 RRTA tax withheld                   71 72 Credit for federal tax on fuels  Attach Form 4136                     72 73 Credits from Form  a 2439 b Reserved c 8885 d 73 74 Add lines 64, 65, 66a, and 67 through 73  These are your total payments                   74 Refund 75 If line 74 is more than line 63, subtract line 63 from line 74  This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you  If Form 8888 is attached, check here 76a Direct deposit  See instructions  b Routing number c Type  Checking Savings d Account number 77 Amount of line 75 you want applied to your 2016 estimated tax 77 Amount You Owe 78 Amount you owe   Subtract line 74 from line 63  For details on how to pay, see instructions                                                                                           78 79 Estimated tax penalty (see instructions)                                         79 Third Party Designee Do you want to allow another person to discuss this return with the IRS (see instructions)  Yes  Complete below  No Designee's name Phone no  Personal identification number (PIN) Sign Here Joint return  See instructions  Keep a copy for your records  Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete  Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge  Your signature Date Your occupation Teacher Daytime phone number Spouse's signature  If a joint return, both must sign  Date Spouse's occupation Homemaker If the IRS sent you an Identity Protection PIN, enter it here (see inst ) Paid Preparer Use Only Print Type preparer's name Preparer's signature Date Check if self employed PTIN Firm's name Firm's EIN Firm's address Phone no  www irs gov form1040 Form 1040 (2015) SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99) Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc ) Attach to Form 1040, 1040NR, or Form 1041  Information about Schedule E and its separate instructions is at www irs gov schedulee   OMB No  1545 0074 2015 Attachment Sequence No  13 Name(s) shown on return Walter and Rebecca Bunge Your social security number 700 01 0002 Part I Income or Loss From Rental Real Estate and Royalties Note  If you are in the business of renting personal property, use Schedule C or C EZ (see instructions)  If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40  A Did you make any payments in 2015 that would require you to file Form(s) 1099  (see instructions) Yes No B If  Yes,  did you or will you file required Forms 1099  Yes No 1a Physical address of each property (street, city, state, ZIP code) A 123 Buncombe Lane, Brian Head, UT 84719 B C 1b Type of Property (from list below) 2 For each rental real estate property listed above, report the number of fair rental and personal use days  Check the QJV box only if you meet the requirements to file as a qualified joint venture  See instructions  Fair Rental Days Personal Use Days QJV A 1 2 3 4 5 6 7 8 A B B C C Type of Property  1 Single Family Residence 3 Vacation Short Term Rental 5 Land 7 Self Rental 2 Multi Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income  Properties  A B C 3 Rents received                                                                       3 4 Royalties received                                                                 4 Expenses  5 Advertising                                                                           5 6 Auto and travel (see instructions)                                         6 7 Cleaning and maintenance                                                     7 8 Commissions                                                                         8 9 Insurance                                                                             9 10 Legal and other professional fees                                         10 11 Management fees                                                                 11 12 Mortgage interest paid to banks, etc  (see instructions)       12 13 Other interest                                                                       13 14 Repairs                                                                                 14 15 Supplies                                                                               15 16 Taxes                                                                                   16 17 Utilities                                                                                 17 18 Depreciation expense or depletion                                       18 19 Other (list) Homeowners' Association Dues 19 20 Total expenses  Add lines 5 through 19                                 20 21 Subtract line 20 from line 3 (rents) and or 4 (royalties)  If result is a (loss), see instructions to find out if you must file Form 6198                                                                           21 ( ) 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions)                                               22 ( ) ( ) ( ) 23a Total of all amounts reported on line 3 for all rental properties                               23a b Total of all amounts reported on line 4 for all royalty properties                             23b c Total of all amounts reported on line 12 for all properties                                       23c d Total of all amounts reported on line 18 for all properties                                       23d e Total of all amounts reported on line 20 for all properties                                       23e 24 Income  Add positive amounts shown on line 21  Do not include any losses                                       24 25 Losses  Add royalty losses from line 21 and rental real estate losses from line 22  Enter total losses here 25 ( ) 26 Total rental real estate and royalty income or (loss)  Combine lines 24 and 25  Enter the result here  If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18  Otherwise, include this amount in the total on line 41 on page 2               26 ( ) For Paperwork Reduction Act Notice, see the separate instructions  Cat  No  11344L Schedule E (Form 1040) 2015 Form 3903 Department of the Treasury Internal Revenue Service (99) Moving Expenses Information about Form 3903 and its instructions is available at www irs gov form3903   Attach to Form 1040 or Form 1040NR  OMB No  1545 0074 2015 Attachment Sequence No  170 Name(s) shown on return Walter   Rebecca Bunge Your social security number 700 01 0002 Before you begin  See the Distance Test and Time Test in the instructions to find out if you can deduct your moving expenses  See Members of the Armed Forces in the instructions, if applicable  1 Transportation and storage of household goods and personal effects (see instructions)                           1 2 Travel (including lodging) from your old home to your new home (see instructions)  Do not include the cost of meals                                                                                                                                               2 3 Add lines 1 and 2                                                                                                                                 3 4 Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is not included in box 1 of your Form W 2 (wages)  This amount should be shown in box 12 of your Form W 2 with code P   4 5 Is line 3 more than line 4  No  You cannot deduct your moving expenses  If line 3 is less than line 4, subtract line 3 from line 4 and include the result on Form 1040, line 7, or Form 1040NR, line 8  Yes  Subtract line 4 from line 3  Enter the result here and on Form 1040, line 26, or Form 1040NR, line 26  This is your moving expense deduction                                                                 5 For Paperwork Reduction Act Notice, see your tax return instructions  Cat  No  12490K Form 3903 (2015) Form 8582 Department of the Treasury Internal Revenue Service (99) Passive Activity Loss Limitations See separate instructions  Attach to Form 1040 or Form 1041  Information about Form 8582 and its instructions is available at www irs gov form8582   OMB No  1545 1008 2015 Attachment Sequence No  88 Name(s) shown on return Walter and Rebecca Bunge Identifying number 700 01 0002 Part I 2015 Passive Activity Loss Caution  Complete Worksheets 1, 2, and 3 before completing Part I  Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions ) 1a Activities with net income (enter the amount from Worksheet 1, column (a)) 1a b Activities with net loss (enter the amount from Worksheet 1, column (b)) 1b ( ) c Prior years unallowed losses (enter the amount from Worksheet 1, column (c))                                                                                                 1c ( ) d Combine lines 1a, 1b, and 1c                                                                                                             1d ( ) Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2, column (a)         2a ( ) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b)                                                                           2b ( ) c Add lines 2a and 2b                                                                                                                           2c ( ) All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)) 3a b Activities with net loss (enter the amount from Worksheet 3, column (b)) 3b ( ) c Prior years unallowed losses (enter the amount from Worksheet 3, column (c))                                                                                                 3c ( ) d Combine lines 3a, 3b, and 3c                                                                                                             3d 4 Combine lines 1d, 2c, and 3d  If this line is zero or more, stop here and include this form with your return  all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c  Report the losses on the forms and schedules normally used                                                               4 ( ) If line 4 is a loss and  Line 1d is a loss, go to Part II  Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III  Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15  Caution  If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III  Instead, go to line 15  Part II Special Allowance for Rental Real Estate Activities With Active Participation Note  Enter all numbers in Part II as positive amounts  See instructions for an example  5 Enter the smaller of the loss on line 1d or the loss on line 4                                                                 5 6 Enter $150,000  If married filing separately, see instructions                     6 7 Enter modified adjusted gross income, but not less than zero (see instructions)                                                                                           7 Note  If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter  0  on line 10  Otherwise, go to line 8  8 Subtract line 7 from line 6                                                                       8 9 Multiply line 8 by 50  ( 5)  Do not enter more than $25,000  If married filing separately, see instructions 9 10 Enter the smaller of line 5 or line 9                                                                                                     10 If line 2c is a loss, go to Part III  Otherwise, go to line 15  Part III Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note  Enter all numbers in Part III as positive amounts  See the example for Part II in the instructions  11 Enter $25,000 reduced by the amount, if any, on line 10  If married filing separately, see instructions 11 12 Enter the loss from line 4                                                                                                                 12 13 Reduce line 12 by the amount on line 10                                                                                         13 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13                             14 Part IV Total Losses Allowed 15 Add the income, if any, on lines 1a and 3a and enter the total                                                      15 16 Total losses allowed from all passive activities for 2015  Add lines 10, 14, and 15  See instructions to find out how to report the losses on your tax return                                               16 For Paperwork Reduction Act Notice, see instructions  Cat  No  63704F Form 8582 (2015)

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Comprehensive Problem 4-1 Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV

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