Denise Lopez, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Denise is a material participant in the business, she is a cash basis taxpayer, and her Social Security number is 123-45-6781. Denise lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Denise wants to designate $3 to the Presidential Election Campaign Fund. She has never owned or used any virtual currency. During 2020, Denise had the following income and expense items: 1. $100,000 salary from Legal Services, Inc. 2. $20,000 gross receipts from her typing services business. 3. $700 interest income from Third National Bank. 4. $1,000 Christmas bonus from Legal Services, Inc. 5. $60,000 life insurance proceeds on the death of her sister. 6. $5,000 check given to her by her wealthy aunt. 7. $100 won in a bingo game. 8. Expenses connected with Typing Services: Office rent $7,000 Supplies 4,400 Utilities and telephone 4,680 Wages to part-time typists 5,000 Payroll taxes 500 Equipment rentals 3,000 9. $9,500 interest expense on a home mortgage (paid to Boca Raton Savings and Loan). 10. $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2020. Denise had paid $14,000 for the silverware on July 1, 2010. She was reimbursed $10,000 by her insurance company. 11. Denise had loaned $2,100 to a friend, Joan Jensen, on June 3, 2016. Joan declared bankruptcy on August 14, 2020, and was unable to repay the loan. Assume that the loan is a bona fide debt. 12. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. 13. Alimony of $10,000 received from her former husband, Omar Guzman; divorce was finalized on December 2, 2013, and no changes have been made to the divorce decree since that time. 14. Interest income of $800 on City of Boca Raton bonds. 15. Denise made estimated Federal tax payments of $2,000. 16. Sales taxes from the sales tax table of $953. 17. Property taxes on her residence of $3,200. 18. Charitable contribution of $2,500 to her alma mater, Citrus State College. 19. On November 1, 2020, Denise was involved in an automobile accident. At the time of the accident, her automobiles FMV was $45,000. After the accident, the automobiles FMV was $38,000. Denise acquired the car on May 2, 2019, at a cost of $52,000. Denises car was covered by insurance, but because the policy had a $5,000 deduction clause, Denise decided not to file a claim for the damage.

Please use these forms from 2020 to complete this problem: 1040 form, Schedule 1, Schedule A, Schedule C, Schedule D and Form 8995