Isabella English is

$33$

$$years old and is a beautician; she makes $

$47$

$,$

$000\mathrm{.}00$

$$a year with $

$9$

$,$

$430\mathrm{.}00$

$$in withholding's. She takes care of her elderly father, whom she pays more than

$50$

$\%$

$$of his support; at the same time, he made her donate $

$11$

$,$

$000\mathrm{.}00$

$$to the VFW in her name. She owns her home for the last five years; her mortgage was $

$21$

$,$

$132\mathrm{.}00$

$$for the year which the interest equated to

$4\mathrm{.}2$

$\%$

$$of that. The taxes that she paid on the home were $

$6$

$,$

$607\mathrm{.}00$

$,$

$$which she pays separately. Her state and local income taxes were $

$1$

$,$

$433\mathrm{.}00$

$$and her federal income taxes were$

$10$

$,$

$250\mathrm{.}00$

$.$

$$She bought her home for $

$265$

$,$

$800\mathrm{.}00$

$,$

$$which at the time was considered a comparable price to the neighborhood. She had the whole house upgraded in the electrical system which cost $

$32$

$,$

$003\mathrm{.}00$

$.$

$$She must buy her work supplies costing $

$343\mathrm{.}99$

$,$

$$and periodicals about beauty to keep up with her industry, costing $

$411\mathrm{.}00$

$.$

$$She received dividends of $

$855\mathrm{.}21$

$$and interest income of $

$1235\mathrm{.}87$

$$for the year; she also invested $

$5$

$,$

$500\mathrm{.}00$

$$in a traditional IRA. Her union dues are $

$1$

$,$

$945\mathrm{.}00$

$$for the year and her book club cost her $

$1$

$,$

$260\mathrm{.}00$

$$for the year. Her personal car was stolen in the parking lot of the bowling alley, it cost her $

$19$

$,$

$480\mathrm{.}00$

$$and the insurance company gave her $

$9$

$,$

$000\mathrm{.}00$

$$to make her whole, which she did not understand because she looked it up online and found that the fair market value is $

$10$

$,$

$430\mathrm{.}00$

$,$

$$so she doesn

$$

t feel very whole. Since her car was stolen, she has to take the bus to work which cost her $

$875\mathrm{.}00$

$$for the year. She figured out the sales tax for the year that she spent came to $

$8$

$,$

$354\mathrm{.}87$

$.$

$$She bought

$230$

$$shares of Home Depot stock from her father for $

$77\mathrm{.}00$

$$a share on May

$3$

$,$

$2023$

$,$

$$her father purchased those shares on October

$11$

$,$

$1982$

$$for $

$7\mathrm{.}98$

$$per share. He sold

$100$

$$shares on November

$19$

$,$

$2023$

$$for $

$82\mathrm{.}00$

$$per share. She has inherited an apartment building with

$10$

$$units from her uncle who died on June

$4$

$,$

$2023$

$,$

$$when the fair market value of the building was $

$899$

$,$

$000\mathrm{.}00$

$.$

$$The building sits on the opposite side of town from where Isabella lives. The alternate valuation of the building

$6$

$$months later if the executor chose it

$,$

$$would have been $

$905$

$,$

$000\mathrm{.}00$

$.$

$$The building was rented to full capacity when she took over the building in July, where each tenant paid the same amount, giving her $

$13222\mathrm{.}00$

$$in income a month. Two tenants moved out at the end of October stating that her uncle was a better landlord. The building was totally paid off, leaving just the expenses of upkeep equaling $

$1$

$,$

$450\mathrm{.}66$

$,$

$$real estate taxes equaling $

$7$

$,$

$750\mathrm{.}00$

$$a month and accumulated depreciation of $

$598$

$,$

$320\mathrm{.}00$

$.$

$$When she first took it over, she had to replace the roof costing her $

$14$

$,$

$093\mathrm{.}00$

$.$

$$She also inherited a gold watch from her uncle, who was an avid watch collector. She sold the watch for $

$23$

$,$

$650\mathrm{.}00$

$$because it was a Captain Kangaroo original edition, this paid for the roof replacement. Her uncle purchased the watch for $

$8$

$,$

$100\mathrm{.}00$

$$on January

$20$

$,$

$1988.$

$$Because the interest rates for first time home buyers have dropped to

$3\mathrm{.}4$

$\%$

$$more people want to move into Isabella

$$

s neighborhood and she received an offer on her house of $

$505$

$,$

$000.$

$$She

$$

s excited about this and wants to know the tax ramifications if she sell

$$

s next year.

A

$)$

$$Prepare Isabella

$$

s tax return for

$2023$

$$and answer any questions that she might have about the potential sale of her property. Please include all itemized deductions. Show all work.