Question
Dr. George E. Beeper is a single taxpayer born on September 22, 1972. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210.
Dr. George E. Beeper is a single taxpayer born on September 22, 1972. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2020 are reported on the W-2 form (see separate tab).
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:
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The house was purchased on July 5, 1985. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself. He spends about 10 hours per month on the rental.
In 2020, 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, 2020 for $345,000 net after commissions. He acquired the home on June 3, 2002 for $260,000 and had made improvements of $10,000.
Dr. Beeper was divorced on January 1, 2014. 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 2020.
Dr. Beeper did not receive an EIP in 2020.
Required:
Complete Form 1040 and the schedules and forms provided for Dr. Beeper.
- 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. Beeper's W-2 Form Beeper's W-2 from the Pine Medical Group is below. a Employee's social security number Safe, accurate, Visit the IRS website OMB No. 1545-0008 IRS e N file 775-88-9531 FAST! Use www.irs.gov/efile Employer identification number (EIN) 1 Wages, tips, other compensation Federal income tax withheld 36-1389676 134,100.00 21,000.00 Employer's name, address, and ZIP code 3 Social security wages 4 Social security tax withheld Pine Medical Group 134,100.00 8,314.20 800 W. 7th Ave. 5 Medicare wages and tips Medicare tax withheld Spokane, WA 92204 134,100.00 1,944.45 7 Social security tips Allocated tips Control number 10 Dependent care benefits Employee's first name and initial Last Suff. 11 Nonqualified plans 12a See instructions for box 12 name C George Beeper DD 5,800.00 45 Mountain View Drive Apt 321 d. Spokane, WA 99210 13 Statutory Retirement Third-party 12b employee plan sick pay
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