Question
I need help on Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet. Thank you!
I need help on Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet. Thank you!
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):
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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.
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