Facts:

1. Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paige provides more than half of her support. Leif lives with his father, Will (Leif lived with Will for all of 2021). Will provides more than half of Leifs support. Paige provides you with the following additional information:
   • She uses the cash method of accounting and a calendar year for reporting.
   • She wishes to contribute to the presidential election campaign.
   • Paige lives at 523 Essex Street, Bangor, Maine 04401.
   • Paiges birthday is May 31, 1982.
   • Alis birthday is October 5, 2011.
   • Leifs birthday is December 1, 2009.
   • Paiges Social Security number is 123-45-6789.
   • Alis Social Security number is 005-10-7232.
   • Leifs Social Security number is 004-10-3419.
   • Wills Social Security number is 006-10-6333.
   • She does not have any foreign bank accounts.

1. Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). ASCIs federal employer identification number is 79-1234466. Paiges pay stubs indicate that she had $4,230 withheld in federal taxes, $4,987 in state taxes, $4,449 in Social Security taxes, and $1,040 in Medicare taxes.

1. Paige earned salary of $70,000 [before subtracting her 401(k) contributions]. She contributed $7,000 to her 401(k) account.
2. ASCI paid $457 of whole life insurance premiums to cover Paiges personal whole life insurance policy. ASCI also paid health club dues of $800 to a nearby health club on Paiges behalf.
3. Paige received free parking in the companys security garage that would normally cost $200 per month.
4. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500.
5. Paige received a Form 1099-B from her broker for the sale of the following securities during 2021. The adjusted basis amounts were reported to the IRS.

Security	Sales Date	Purchase Date	Sales Price	Her Basis
Nebraska state bonds	03/14/2021	10/22/2014	$2,300	$1,890
Cassill Corp (500 shares)	10/20/2021	02/19/2018	8,500	9,760

1. In addition to the taxes withheld from her salary, Paige also made timely estimated federal tax payments of $175 per quarter. Paige made timely estimated state income tax payments of $150 for the first three quarters. The $150 fourth-quarter state payment was made on December 28, 2021. Paige would like to receive a refund for any overpayment.

1. Paige did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency.
2. Paige received the 2021 Economic Impact Payments (stimulus checks) in the full amount before filing her 2021 tax return.
3. Paige received $1,400 in Advanced Child Tax Credits in 2021
4. Paige paid $2,050 in real estate taxes on her principal residence. The real estate tax is used to pay for town schools and other municipal services.
5. Paige has been working diligently to pay off her student loans from her undergraduate degree at Larkin College. During 2021, Paiges payments totaled $4,500, which included $690 in interest.
6. Paige drives a 2018 Acura TL and she paid $280 in property tax to the state based on the book value of the car.
7. Paige incurred the following unreimbursed medical costs:

Dentist	$ 310
Doctor	450
Prescription drugs	215
Over-the-counter drugs	140
Optometrist	125
Emergency room charges	440
LASIK eye surgery	6,000
Chiropractor	265

1. On May 14, 2021, Paige contributed clothing to the Salvation Army. The original cost of the clothing was $740. She has substantiation valuing the donation at $360. The Salvation Army is located at 350 Stone Ridge Road, Bangor, Maine 04401.

1. Paige made the following cash contributions and received a statement from each of the following organizations acknowledging her contribution:

Larkin College	$850
United Way	125
First Methodist Church	790
Amos House (homeless shelter)	200
Local Chamber of Commerce	100

1. Paige paid $500 per month to her ex-husband, Will, in alimony. The Turners divorce was finalized on June 27^th, 2016.

1. During the fall Paige enrolled in two graduate engineering classes at Graduate University, located at 101 Campus Drive in Bangor. Paiges total tuition, fees, and other course-related costs was $2,300.
2. Paige owns several other investments and in February 2021 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2021. (See Exhibit A.)

EXHIBIT A Forms 1099 and 1098

This is important tax information and is being furnished to the Internal Revenue Service.

1. In addition to the investments discussed above, Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding (S corp. ID number 45-4567890). Grubstake reported taxable income of $300,000 and paid a distribution of $1.00 per share during the current year. Paige tells you that Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report has been consistent with the K-1 for many years. Paige does not materially participate in Grubstakes activities.

Grubstake Mining & Development: preliminary report (preliminary K-1) to Paige for the 2021 tax year:

Distribution to shareholder	$1,000
Ordinary income (1% of $300,000)	3,000

1. On January 15, 2021, Paiges father died. From her fathers estate, she received stock valued at $30,000 (his basis was $12,000) and her fathers house valued at $90,000 (his basis in the house was $55,000).

1. Paige found a renter for her fathers house on August 1. The monthly rent is $400, and the lease agreement is for one year. In November, the plumbing froze and several pipes burst. The tenant had the repairs made and paid the $300 bill. In December, he reduced his rental payment to $100 to compensate for the plumbing repairs. Paige provides you with the following additional information for the rental in 2021:

Property taxes	$770
Cleaning	285
Insurance expense	495
Management fee	350
Depreciation (to be computed)	?

1. The rental property is located at 35 Harvest Street, Orono, Maine 04473. Local practice is to allocate 12 percent of the fair market value of the property to the land. Paige makes all decisions with respect to the property.

1. Paige sells real estate in the evening and on weekends (considered an active trade or business). She runs her business from a rental office she shares with several other realtors (692 River Road, Bangor, Maine 04401). The name of her business is Turner Real Estate and the federal identification number is 05-8799561. Her business code is 531210. Paige has been operating in a business-like way since 2008 and has always shown a profit. She had the following income and expenses from her business:

Commissions earned	$21,250
Expenses:
Advertising	2,200
Real estate license	190
Rent	6,000
Utilities	650

1. Paige has used her Acura TL in her business since July 1, 2021. During 2021, she properly documented 6,000 business miles (1,000 miles each month). The total mileage on her car (i.e., for both business and personal use) during the year was 15,000 miles (including 200 miles commuting to and from the real estate office). In 2021, Paige elects to use the standard mileage method to calculate her car expenses. She spent $45 on tolls and $135 on parking related to the real estate business.