Comprehensive Problem 4-2B

In 2020, Professor Patricia (Patty) Pt retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old. Patty lives at 98 Colander Street, Apt. 206D, Henderson, NV 89052. Professor Pt's Social Security number is 565-66-9378. In 2020, Patty had just a few months of salary from her previous job:

Wages	$9,900
Federal tax withheld	450
State tax withheld	0

Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2020 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (despite Patty vigorously pursuing new tenants). Patty actively manages the property herself. The following are the related expenses for the rental house:

Real estate taxes	$4,000
Mortgage interest	9,000
Insurance	550
Depreciation (assume fully depreciated)	0
Homeowners' Association dues	1,250
Repairs	1,200
Gardening	575
Advertising	1,200

The condo was purchased on August 31, 1981. Patty handles all rental activities (e.g., rent collection, finding tenants, etc.) herself.

In 2020, Patty sold her beloved home of almost 30 years for $380,000 on February 27, 2020. Her basis in the home was $120,000 and she acquired the home sometime in July of 1990 (she could not remember the day).

Patty received a $1,200 EIP in 2020.

Required: Complete Form 1040

• The taxpayer had health coverage for the entire year.
• The taxpayer does not want to make a 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 amounts to the nearest dollar.
• Enter all amounts as positive numbers except for the following special instructions: If required, on Form 1040, line 17 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 and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.

orm 1045 (2020)

Patricia Pt

565-66-9378

Page 2

Schedule ANOL (see instructions)

1	For individuals, subtract your standard deduction or itemized deductions from your adjusted gross income and enter it here. For estates and trusts, enter taxable income increased by the total of the charitable deduction, income distribution deduction, and exemption amount (see instructions . . . . . . . . . . . . . . .
						1	fill in the blank d597c5056fa2ff1_12
2	Nonbusiness capital losses before limitation. Enter as a positive number (see instructions)			2	fill in the blank d597c5056fa2ff1_13
3	Nonbusiness capital gains (without regard to any section 1202 exclusion) . . . .			3	fill in the blank d597c5056fa2ff1_14
4	If line 2 is more than line 3, enter the difference. Otherwise, enter -0- . . . . . . .			4	fill in the blank d597c5056fa2ff1_15
5	If line 3 is more than line 2, enter the difference. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . .	5	fill in the blank d597c5056fa2ff1_16
6	Nonbusiness deductions (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .			6	fill in the blank d597c5056fa2ff1_17
7	Nonbusiness income other than capital gains (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7	fill in the blank d597c5056fa2ff1_18
8	Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			8	fill in the blank d597c5056fa2ff1_19
9	If line 6 is more than line 8, enter the difference. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . .					9	fill in the blank d597c5056fa2ff1_20
10	If line 8 is more than line 6, enter the difference. Otherwise, enter -0-. But don't enter more than line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	10	fill in the blank d597c5056fa2ff1_21
11	Business capital losses before limitation. Enter as a positive number . . . . . . . .			11	fill in the blank d597c5056fa2ff1_22
12	Business capital gains (without regard to any section 1202 exclusion) . . . . . . . . . . . . . . . . . . . . . . . . . . .	12	fill in the blank d597c5056fa2ff1_23
13	Add lines 10 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			13	fill in the blank d597c5056fa2ff1_24
14	Subtract line 13 from line 11. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . .			14	fill in the blank d597c5056fa2ff1_25
15	Add lines 4 and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .			15	fill in the blank d597c5056fa2ff1_26
16	Enter the loss, if any, from line 16 of your 2019 Schedule D (Form 1040). (For estates and trusts, enter the loss, if any, from line 19, column (3), of Schedule D (Form 1041).) Enter as a positive number. If you dont have a loss on that line (and dont have a section 1202 exclusion), skip lines 16 through 21 and enter on line 22 the amount from line 15 . . . . . . . . . . . . . . . . . . . . .
				16	fill in the blank d597c5056fa2ff1_27
17	Section 1202 exclusion. Enter as a positive number (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .					17
18	Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . .			18
19	Enter the loss, if any, from line 21 of your 2020 Schedule D (Form 1040). (For estates and trusts, enter the loss, if any, from line 20 of Schedule D (Form 1041).) Enter as a positive number . . . . . . . . . . . . . . . . . . . .
				19
20	If line 18 is more than line 19, enter the difference. Otherwise, enter -0- . . . . .			20
21	If line 19 is more than line 18, enter the difference. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . .					21	fill in the blank d597c5056fa2ff1_28
22	Subtract line 20 from line 15. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .					22	fill in the blank d597c5056fa2ff1_29
23	NOL deduction for losses from other years. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . .					23
24	NOL. Combine lines 1, 9, 17, and 21 through 23. If the result is less than zero, enter it here and on page 1, line 1a. If the result is zero or more, you don't have an NOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .					24	fill in the blank d597c5056fa2ff1_30
Form 1045 (2020)