Comprehensive Problem 4-2A

Dr. George E. Beeper is a single taxpayer born on September 22, 1970. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-88-9531. Dr. Beeper's works for the Pine Medical Group.

Dr. Beeper owns a rental house located at 672 Lake Street, Spokane, WA 99212. The house rents for $1,000 per month and was rented for the entire year. The following are the related expenses for the rental house:

Real estate taxes$5,800 Mortgage interest 14,500 Insurance 2,225 Depreciation (assume fully depreciated)0 Repairs 550 Maintenance 1,980 The house was purchased on July 5, 1983. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself.

In 2018, Dr. Beeper sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single-family home. Dr. Beeper's home sold on February 12, 2018 for $345,000 net after commissions. He acquired the home on June 3, 2000 for $260,000 and had made improvements of $10,000.

Dr. Beeper was divorced in 2012. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $800 per month. Dr. Beeper made all his monthly alimony payments in 2018.

Complete Form 1040 and the schedules and forms provided for Dr. Beeper.

1. Wages, tips, other compensation: 132,400.002
2. Federal income tax withheld 21,000.00
3. Social security wages 128,400.004
4. Social security tax withheld 7,960.80
5. Medicare wages and tips 132,400.00
6. Medicare tax withheld 1,919.80