Question
In 2019, Professor Patricia (Patty) Pt retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old.
In 2019, Professor Patricia (Patty) Pt retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old. Patty lives at 98 Colander Street, Apt. 206D, Henderson, NV 89052. Professor Pts Social Security number is 565-66-9378. In 2019, Patty had just a few months of salary from her previous job:
Wages | $9,800 |
Federal tax withheld | 450 |
State tax withheld | 0 |
Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for two months of 2019 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (although she vigorously pursued new tenants). Patty actively manages the property herself. The following are the related expenses for the rental house:
Real estate taxes | $3,900 |
Mortgage interest | 9,100 |
Insurance | 561 |
Depreciation (assume fully depreciated) | 0 |
Homeowners Association dues | 1,260 |
Repairs | 1,195 |
Gardening | 560 |
Advertising | 1,200 |
The condo was purchased on August 31, 1980. Professor Pt handles all rental activities (e.g., rent collection, finding tenants, etc.) herself.
In 2019, Patty sold her beloved home for almost 30 years for $380,000 on February 27, 2019. Her basis in the home was $120,000 and she acquired the home sometime in July of 1989 (she could not remember the day).
Required: Complete Professor Pts federal tax return for 2019. Use Form 1040, Schedule D, Form 8949, Schedule E, and Form 8582 (page one only) to complete this tax return. Also, to compute Pattys net operating loss carryforward, prepare only Schedule A of Form 1045
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