Comprehensive Problem 8-2

Lisa Kohl (age 44) is an unmarried high school principal.

During the year, Lisa paid the following amounts (all of which can be substantiated):

Home mortgage interest	$9,250
KS state income tax payment for 2017	$425
MasterCard interest	550
Life insurance (whole life policy)	750
Property taxes on personal residence	1,425
Blue Cross medical insurance premiums	250
Other medical expenses	780
Income tax preparation fee	300
Charitable contributions (in cash)	730

On January 28, 2018, Lisa sold undeveloped land for $180,000 (basis to Lisa of $135,000). The land was purchased 6 years ago. She received $25,000 as a down payment and the buyer's 10-year note for $155,000. The note is payable at the rate of $15,500 per year plus 8 percent interest. On January 28, 2019, the first of the ten principal and interest payments is due.

W-2 form: Wages $56,000; Federal income tax withheld $5,800; State Income tax $750

Form 1099-INT: Interest Income $200

Form 1099-DIV: Ordinary div $4,100: Qualified div $4,100

Form 1099-B: Proceeds $17,100; Cost or other basis $43,100

Required: Complete Lisa's Form 1040, Schedules 1, A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.