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. Beepers 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:

Wages: $134,100.00 Federal income tax withheld: $21,000.00 Social security wages: $134,100.00 Social security tax withheld: 8314.20 Medicare wages and tips: $134,100.00 Medicare tax withheld: $1944.45

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:

Real estate taxes: $6,000 Mortgage interest: $14,500 Insurance: 22,000 Depreciation: 0 Repairs: 600 Maintenance: 2,000

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. Beepers 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.

Required: Complete Dr. Beepers federal tax return for 2020. Determine if Form 8949 and Schedule D are required. If so, use those forms and Form 1040, Schedule E (page 1 only), and Form 8582 (page 1 only) to complete this tax return. Do not complete Form 4562 for reporting depreciation.

Check figures for comprehensive problem:

• Adjusted gross income (line 11): $111,750
• Schedule E, total loss (line 26): $(12,750)
• Tax overpaid (line 34): $3,070