Homework 8

Instruction

Comprehensive Problem 8-2

Lisa Kohl (birthdate 02/14/1953) is an unmarried high school principal. Lisa received the following tax documents (which are located on separate tabs in the problem):

• W-2 Form
• Form 1099-INT
• Form 1099-DIV
• Form 1099-B

During the year, Lisa paid the following amounts (all of which can be substantiated):

Home mortgage interest reported on Form 1098 (not shown)	$9,540
KS state income tax payment for 2018	$475
MasterCard interest	550
Life insurance (whole life policy)	750
Property taxes on personal residence	1,525
Blue Cross medical insurance premiums	250
Other medical expenses	780
Income tax preparation fee	300
Charitable contributions (in cash)	750

On January 28, 2019, Lisa sold land for $175,000 (basis to Lisa of $130,000). The land was purchased 6 years ago as an investment. She received $25,000 as a down payment and the buyer's 10-year note for $150,000. The note is payable at the rate of $15,000 per year plus 8 percent interest. On January 28, 2020, the first of the ten principal and interest payments is due.

Lisa also helps support her father, Jay Hawke, who lives in a nearby senior facility. Jay's Social Security number is 433-33-2121. Lisa provides over one-half of Jay's support but Jay also has a pension that paid him income of $14,000 in 2019. His Social Security benefits were $3,200 in 2019.

Required: Complete Lisa's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.

• Make realistic assumptions about any missing data.
• She had health care coverage for the entire year and does not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar.

Lisas W-2 Form

Lisa received the following W-2 form:

Lisas Form 1099-INT

Lisa received the following form 1099-INT:

Lisas Form 1099-DIV

Lisa received the following 1099-DIV form:

Lisas Form 1099-B

Lisas sole transaction was reported to her on a Form 1099-B:

Complete Lisa's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.

2 a Employee's social security number Safe, accurate, 467-98-9784 OMB No. 1545-0008 FAST! Use F r se b Employer identification number (EIN) 1 Wages, tips, other compensation 56-1357924 $56,640.00 c Employer's name, address, and ZIP code 3 Social Security wages Shawnee Mission School District $59,000.00 8200 W. 71st Street Phone Num # 5 Medicare wages and tips $59,000.00 7 Social Security tips Shawnee Mission KS 66204 United States Visit the IRS website at file www.irs.govlefile Federal income tax withheld $6,100.00 4 Social Security tax withheld $3,658.00 6 Medicare tax withheld $855.50 & Allocated tips d Control number 10 Dependent care benefits Suff. 11 Nonqualified plans Suff. 11 Nonqua e Employee's first name and initial Lisa 212 Quivira Road Last name Kohl 12a See instructions for box 12 E $2.360.00 12b Phone Num # DD $9,800.00 14 Other Overland Park KS 66210 United States 12d f Employee's address and ZIP code 15 State Employer's state ID number KS 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, etc. 17 State income tax $56,640.00 $1,150.00 Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income 1 Interest income Form 1099-INT 203.88 2 Early withdrawal penalty Olanthe National Bank 1240 E. Sante Fe Street Olanthe, KS 660611 PAYER'S TIN Copy B RECIPIENT'S TIN For Recipient 3 Interest on U.S. Savings Bonds and Treas. obligations 44-1352469 467-98-9784 RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses This is important tax information and is being furnished to the Lisa kohl 6 Foreign tax paid 7 Foreign country or U.S. possession IRS. If you are Street address (including apt. no.) required to file a 8 Tax-exempt interest 9 Specified private activity bond return, a negligence penalty or other 212 Quivira Rd. sanction may be City or town, state or province, country, and ZIP or foreign postal code imposed on you if 10 Market discount 11 Bond premium this income is taxable and the IRS Overland Park, KS 66210 determines that it has FATCA filing $ not been reported. requirement 12 Rond premium on Treasury obligations 13 Bond premium on tar exempt bond interest Account number (see instructions) 14 Tax-exempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld Form 1099-INT (keep for your records) www.irs.gow Form1099INT Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country. ZIP 1a Total ordinary dividends or foreign postal code, and telephone no OMB No 1545-0110 4,122.40 1b Qualified dividends 2019 Dividends and Distributions 4,122.40 2a Total capital gain distr. Form 1099-DIV 2b Unrecap. Sec. 1250 gain Johnson Corporation 100 E. 49th Street New York, NY 10017 PAYER'S TIN Copy B For Recipient RECIPIENT'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain 467-98-9784 17-2468135 RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld 0.00 5 Section 199A dividends 6 Investment expenses Lisa Kohl Street address (including apt. no.) 7 Foreign tax paid & Foreign country or U.S. possession This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 212 Quivira Rd. City or town, state or province, country, and ZIP or foreign postal code 9 Cash liquidation distributions 10 Noncash liquidation distribution Overland Park, KS 66210 FATCA filing requirement 11 Exempt-interest dividends 12 Specified private activity bond interest dividends Account number (see instructions) 13 State | 14 State identification no. 15 State tax withheld Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 OMB No. 1545-0715 Proceeds From or foreign postal code, and telephone no. 2019 Barter Exchange O Broker and Form 1099-B Transactions Big Brokerage Company 1a Description of property (Example: 100 sh.XYZ Co.) 100 shares Johnson Corp. 123 Wall Street 1b Date acquired 1c Date sold or disposed New York, NY 10014 12/13/2018 11/05/2019 PAYER'S TIN RECIPIENT'S TIN 1d Proceeds 1e Cost or other basis Copy B 17,200.00 $ 35,600.00 For Recipient 11 Accrued market discount 1g Wash sale loss disallowed 11-0010011 467-98-9784 RECIPIENT'S name 2 Short-term gain or loss 3 If checked, proceeds from: Lisa Kohl Long-term gain or loss Collectibles Ordinary QOF This is important tax Street address (including apt. no.) 4 Federal income tax withheld 5 If checked, noncovered information and is security being furnished to 212 Quivira Road the IRS. If you are 6 Reported to IRS: 7 If checked, loss is not allowed City or town, state or province, country, and ZIP or foreign postal code required to file a based on amount in 1d Gross proceeds O return, a negligence Overland Park, KS 66210 Net proceeds penalty or other 8 Profit or loss) realized in 9 Unrealized profit or loss) on sanction may be 2019 on closed contracts open contracts-12/31/2018 imposed on you if Account number (see instructions) this income is taxable and the IRS CUSIP number FATCA filing 10 Unrealized profit or loss) on 11 Aggregate profit or loss) determines that it requirement open contracts-12/31/2019 on contracts has not been reported. 14 State name 15 State identification no. 16 State tax withheld $ 12 If checked, basis reported 13 Bartering to IRS 0 s Form 1099-B (Keep for your records) www.irs.gov/Form 1099B Department of the Treasury - Internal Revenue Service 2 a Employee's social security number Safe, accurate, 467-98-9784 OMB No. 1545-0008 FAST! Use F r se b Employer identification number (EIN) 1 Wages, tips, other compensation 56-1357924 $56,640.00 c Employer's name, address, and ZIP code 3 Social Security wages Shawnee Mission School District $59,000.00 8200 W. 71st Street Phone Num # 5 Medicare wages and tips $59,000.00 7 Social Security tips Shawnee Mission KS 66204 United States Visit the IRS website at file www.irs.govlefile Federal income tax withheld $6,100.00 4 Social Security tax withheld $3,658.00 6 Medicare tax withheld $855.50 & Allocated tips d Control number 10 Dependent care benefits Suff. 11 Nonqualified plans Suff. 11 Nonqua e Employee's first name and initial Lisa 212 Quivira Road Last name Kohl 12a See instructions for box 12 E $2.360.00 12b Phone Num # DD $9,800.00 14 Other Overland Park KS 66210 United States 12d f Employee's address and ZIP code 15 State Employer's state ID number KS 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 16 State wages, tips, etc. 17 State income tax $56,640.00 $1,150.00 Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income 1 Interest income Form 1099-INT 203.88 2 Early withdrawal penalty Olanthe National Bank 1240 E. Sante Fe Street Olanthe, KS 660611 PAYER'S TIN Copy B RECIPIENT'S TIN For Recipient 3 Interest on U.S. Savings Bonds and Treas. obligations 44-1352469 467-98-9784 RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses This is important tax information and is being furnished to the Lisa kohl 6 Foreign tax paid 7 Foreign country or U.S. possession IRS. If you are Street address (including apt. no.) required to file a 8 Tax-exempt interest 9 Specified private activity bond return, a negligence penalty or other 212 Quivira Rd. sanction may be City or town, state or province, country, and ZIP or foreign postal code imposed on you if 10 Market discount 11 Bond premium this income is taxable and the IRS Overland Park, KS 66210 determines that it has FATCA filing $ not been reported. requirement 12 Rond premium on Treasury obligations 13 Bond premium on tar exempt bond interest Account number (see instructions) 14 Tax-exempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld Form 1099-INT (keep for your records) www.irs.gow Form1099INT Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country. ZIP 1a Total ordinary dividends or foreign postal code, and telephone no OMB No 1545-0110 4,122.40 1b Qualified dividends 2019 Dividends and Distributions 4,122.40 2a Total capital gain distr. Form 1099-DIV 2b Unrecap. Sec. 1250 gain Johnson Corporation 100 E. 49th Street New York, NY 10017 PAYER'S TIN Copy B For Recipient RECIPIENT'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain 467-98-9784 17-2468135 RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld 0.00 5 Section 199A dividends 6 Investment expenses Lisa Kohl Street address (including apt. no.) 7 Foreign tax paid & Foreign country or U.S. possession This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 212 Quivira Rd. City or town, state or province, country, and ZIP or foreign postal code 9 Cash liquidation distributions 10 Noncash liquidation distribution Overland Park, KS 66210 FATCA filing requirement 11 Exempt-interest dividends 12 Specified private activity bond interest dividends Account number (see instructions) 13 State | 14 State identification no. 15 State tax withheld Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Applicable checkbox on Form 8949 OMB No. 1545-0715 Proceeds From or foreign postal code, and telephone no. 2019 Barter Exchange O Broker and Form 1099-B Transactions Big Brokerage Company 1a Description of property (Example: 100 sh.XYZ Co.) 100 shares Johnson Corp. 123 Wall Street 1b Date acquired 1c Date sold or disposed New York, NY 10014 12/13/2018 11/05/2019 PAYER'S TIN RECIPIENT'S TIN 1d Proceeds 1e Cost or other basis Copy B 17,200.00 $ 35,600.00 For Recipient 11 Accrued market discount 1g Wash sale loss disallowed 11-0010011 467-98-9784 RECIPIENT'S name 2 Short-term gain or loss 3 If checked, proceeds from: Lisa Kohl Long-term gain or loss Collectibles Ordinary QOF This is important tax Street address (including apt. no.) 4 Federal income tax withheld 5 If checked, noncovered information and is security being furnished to 212 Quivira Road the IRS. If you are 6 Reported to IRS: 7 If checked, loss is not allowed City or town, state or province, country, and ZIP or foreign postal code required to file a based on amount in 1d Gross proceeds O return, a negligence Overland Park, KS 66210 Net proceeds penalty or other 8 Profit or loss) realized in 9 Unrealized profit or loss) on sanction may be 2019 on closed contracts open contracts-12/31/2018 imposed on you if Account number (see instructions) this income is taxable and the IRS CUSIP number FATCA filing 10 Unrealized profit or loss) on 11 Aggregate profit or loss) determines that it requirement open contracts-12/31/2019 on contracts has not been reported. 14 State name 15 State identification no. 16 State tax withheld $ 12 If checked, basis reported 13 Bartering to IRS 0 s Form 1099-B (Keep for your records) www.irs.gov/Form 1099B Department of the Treasury - Internal Revenue Service