filing form for two retired couples with expenses and retirement income

Tax Return 3 William and Cathy Wilson are retired and are both over 65 years old and have asked you to complete their 2016 Tax Return. In addition to the files provided detailing their retirement income, they have a small for unit apartment building at 123 Forest Ave, Lansing, MI 48812 that they actively manage. Rents Unit 1 Unit 2 Unit 3 Unit 4 Monthly $600 $600 $700 $750 Mo Rented 12 12 7 3 Repairs 250 300 4000 7000 300 300 Cleaning Expenses for the building: Advertising $350 Utilities $900 Taxes $5500 Insurance $2600 Mortgage Int $6800 Total Mileage 7500 miles They paid $350 to have their taxes prepared in 2015 of which $150 was for the rental property. Cost of the building was $150,000 not including the land value. The building was purchased 01/01/2000 and they have Accumulative Depreciation of $81,818. In addition they have the following personal items: Social Security Benefits: William of $25950 and Cathy of $26988. And each paid $1280 for their Medicare Part B Insurance. Interest income of $11,500 from XYZ Bank. (They do not need this for living expenses.) Mortgage interest of $3600. Forms were provided. Taxes of $1500. Forms were provided. Medical Expenses out of pocket of $9800. Plus Medicare Supplemental Insurance of $7200. They drove a total of 976 mile to receive medical services. Receipts were provided. Vehicle License plates cost $276 and they made Cash Charitable Contributions of $5500. Please complete the 2016 Tax Return. Provide 2 Tax Saving Suggestions. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code 25560 $ MANUFACTURER 123 ANYWHERE ST LANSING MI 48912 OMB No. 1545-0119 1 Gross distribution 2016 2a Taxable amount 25560 $ 1099-R Form 2b Taxable amount not determined PAYER'S federal identification number 39-8956230 RECIPIENT'S identification number Total distribution 3 Capital gain (included in box 2a) $ withheld /Designated Roth contributions or insurance premiums $ Street address (including apt. no.) IRA/ SEP/ SIMPLE 7 LANSING MI 48912 distribution 11 1st year of desig. Roth contrib. $ Account number (see instructions) 8 Other % % 9b Total employee contributions $ 13 State/Payer's state no. 14 State distribution 12 State tax withheld 1000 $ $ \u0001 \u0002 \u0003 \u0004 \u0003 \u0005 \u0006 \u0007 \u0002 $ $ \b 16 Name of locality 15 Local tax withheld 1099-R 25560 17 Local distribution $ $ Form This information is being furnished to the Internal Revenue Service. $ City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total FATCA filing requirement 6 Net unrealized appreciation in employer's securities $ 7 Distribution code(s) 2356 LCC 3500 $ 5 Employee contributions WILLIAM WILSON within 5 years 4 Federal income tax 353-69-8741 RECIPIENT'S name 10 Amount allocable to IRR Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. $ $ www.irs.gov/form1099r Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code 20123 $ ABC CO 1566 MICHIGAN LANSING MI 48913 OMB No. 1545-0119 1 Gross distribution 2016 2a Taxable amount 20123 $ 1099-R Form 2b Taxable amount not determined PAYER'S federal identification number 37-9865427 RECIPIENT'S identification number Total distribution 3 Capital gain (included in box 2a) $ /Designated Roth contributions or insurance premiums $ Street address (including apt. no.) IRA/ SEP/ SIMPLE 7 distribution FATCA filing 11 1st year of desig. Roth contrib. requirement $ Account number (see instructions) 1099-R 1100 15 Local tax withheld $ $ Form % 12 State tax withheld $ $ www.irs.gov/form1099r 8 Other This information is being furnished to the Internal Revenue Service. $ City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total LANSING MI 48912 2900 6 Net unrealized appreciation in employer's securities $ 7 Distribution code(s) 2356 LCC QNA withheld $ 5 Employee contributions CATHY WILSON within 5 years 4 Federal income tax 658-96-4475 RECIPIENT'S name 10 Amount allocable to IRR Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. % 9b Total employee contributions $ 13 State/Payer's state no. 14 State distribution \u0001 \u0002 \u0003 \u0004 \u0006 \u0005 \u0007 16 Name of locality $ $ 20123 17 Local distribution $ $ Department of the Treasury - Internal Revenue Service