Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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):

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Fundamentals Of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W. Maher

6th Edition

1260569098, 9781260569094

More Books

Students also viewed these Accounting questions

Question

Complete the reaction. i) SH ii) BF3, EtO SH ?

Answered: 1 week ago

Question

What are the pros and cons regarding Angelica joining the union?

Answered: 1 week ago