Comprehensive Problem 4 2A Dr Theodore E Lariat is a single taxpayer born on September 22, 1973 He lives at 45 Mountain View Dr , Apt 321, Spokane, WA 99210 Dr Lariat's Social Security number is 775 88 9530 Dr Lariat works for the Pine Medical Group, and his earnings and income tax withholding for 2021 are reported on the W 2 form (see separate tab) Dr Lariat 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 $6,000 Mortgage interest 14,500 Insurance 2,200 Depreciation (assume fully depreciated) 0 Repairs 600 Maintenance 2,000 The house was purchased on July 5, 1986 Dr Lariat handles all rental activities (e g , rent collection, finding tenants, etc ) himself He spends about 10 hours per month on the rental In 2021, Dr Lariat sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single family home Dr Lariat's home sold on February 12, 2021 for $345,000 net after commissions He acquired the home on June 3, 2003 for $260,000 and had made improvements of $10,000 Dr Lariat did not receive an EIP in 2021 Required Complete Form 1040 and the schedules and forms provided for Dr Lariat The taxpayer had health coverage for the entire year The taxpayer does not want to make contribution to the presidential election campaign Do not complete Form 4562 for reporting depreciation Make realistic assumptions about any missing data If an amount box does not require an entry or the answer is zero, enter 0 If required, round any amount to the nearest dollar Enter all amounts as positive numbers except for the following special instructions If required, on Form 1040, line 7a and on Schedule E, on lines 21, 25, and 26, use the minus sign to indicate a loss On Form 8582, if required, use the minus sign to enter a loss as a negative number on the lines 1d, 4, 16 However, per the instructions on the tax return, enter all numbers in Part II as positive amounts Dr Lariat's W 2 Form Question Content Area Dr Lariat's W 2 from the Pine Medical Group is below a Employee's social security number 775 88 9530 OMB No 1545 0008 Safe, accurate, FAST Use IRS e file Visit the IRS website at www irs gov efile b Employer identification number (EIN) 36 1389676 1 Wages, tips, other compensation 125,000 00 2 Federal income tax withheld 20,000 00 c Employer's name, address, and ZIP code Pine Medical Group 800 W 7th Ave Spokane, WA 92204 3 Social security wages 125,000 00 4 Social security tax withheld 7,750 00 5 Medicare wages and tips 125,000 00 6 Medicare tax withheld 1,812 25 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits e Employee's first name and initial Last name George Lariat 45 Mountain View Drive Apt 321 Spokane, WA 99210 Suff 11 Nonqualified plans 12a See instructions for box 12 C o d e DD 5,800 00 13 Statutory employee Retirement plan Third party sick pay 12b C o d e 14 Other

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Comprehensive Problem 4-2A Dr. Theodore E. Lariat is a single taxpayer born on September 22, 1973. He lives at 45 Mountain View Dr., Apt. 321,

Comprehensive Problem 4-2A

Dr. Theodore E. Lariat is a single taxpayer born on September 22, 1973. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Lariat's Social Security number is 775-88-9530. Dr. Lariat works for the Pine Medical Group, and his earnings and income tax withholding for 2021 are reported on the W-2 form (see separate tab).

Dr. Lariat 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	$6,000
Mortgage interest	14,500
Insurance	2,200
Depreciation (assume fully depreciated)	0
Repairs	600
Maintenance	2,000

The house was purchased on July 5, 1986. Dr. Lariat handles all rental activities (e.g., rent collection, finding tenants, etc.) himself. He spends about 10 hours per month on the rental.

In 2021, Dr. Lariat sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single-family home. Dr. Lariat's home sold on February 12, 2021 for $345,000 net after commissions. He acquired the home on June 3, 2003 for $260,000 and had made improvements of $10,000.

Dr. Lariat did not receive an EIP in 2021.

Required: Complete Form 1040 and the schedules and forms provided for Dr. Lariat.

The taxpayer had health coverage for the entire year.
The taxpayer does not want to make contribution to the presidential election campaign.
Do not complete Form 4562 for reporting depreciation.
Make realistic assumptions about any missing data.
If an amount box does not require an entry or the answer is zero, enter "0".
If required, round any amount to the nearest dollar.
Enter all amounts as positive numbers except for the following special instructions: If required, on Form 1040, line 7a and on Schedule E, on lines 21, 25, and 26, use the minus sign to indicate a loss.
On Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4, 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.