Fill our Schedule A for Cecil C. Seymour
SUILWall, TIVUILLE IMA. Tax Computation Prob 57. Cecil C. Seymour is a 64-year-old widower. He had income for 2021 as follows: Pension from former employer $39,850 Interest income from Alto National Bank 5,500 Interest income on City of Alto bonds 4,500 Dividends received from IBM stock held for over one year Collections on annuity contract he purchased from Great Life Insurance 5,400 Social Security benefits 14,000 Rent income on townhouse 9,000 HW I 2,000 /../ The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2021. Cecil's 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2021. She used the money to start a new business. Cecil does not charge her interest because she cannot afford to pay it, but he does expect to collect the principal eventually. Sarah is living with Cecil until the business becomes profit- able. Except for housing, Sarah provides her own support from her business and $1,600 in dividends on stocks that she inherited from her mother. Other relevant information is presented below. Expenses on rental townhouse: Utilities Maintenance Depreciation Real estate taxes Insurance $2,800 1,000 2,000 750 700 26 is Income State income taxes paid: $3,500 County personal property taxes paid: $3,100 Payments on estimated 2021 Federal income tax: $5,900 Charitable contributions of cash to Alto Baptist Church: $7,400 Federal interest rate: 6% op. Sales taxes paid: $912 Compute Cecil's 2021 Federal income tax payable (or refund due). SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040) Go to www.irs.gov/Schedule A for instructions and the latest information. 2021 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number 5d Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) 1 Dental 2 Enter amount from Form 1040 or 1040-SR, line 11 2 Expenses 3 Multiply line 2 by 7.5% (0.075) 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 3 1 Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box....... 0 5a b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c e Enter the smaller of line 5d or $10,000 $5,000 if married filing separately)... 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 6 Interest 8 Home mortgage interest and points. If you didn't use all of your home You Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your instructions and check this box. mortgage interest deduction may be a Home mortgage interest and points reported to you on Form 1098. limited (see See instructions if limited 8 instructions) b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no. and address 7 9 8b c Points not reported to you on Form 1098. See instructions for special rules 8 d Mortgage insurance premiums (see instructions) 8d e Add lines 8a through 8d 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, made a gift and got a benefit for it. see instructions. You must attach Form 8283 if over $500. 12 see instructions 13 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions.............. Other 16 Other-from list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 12a 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. . Cat. No. 171450 Schedule A (Form 1040) 2021 15
