Isabella English is 33 years old and is a beautician; she makes $47,000.00 a year with $9,430.00 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 $11,000.00 to the VFW in her name. She owns her home for the last five years; her mortgage was $21,132.00 for the year which the interest equated to 4.2% of that. The taxes that she paid on the home were $6,607.00. Her state and local income taxes were $1,433.00 and her federal income taxes were$10,250.00. She bought her home for $265,800.00, which at the time was considered a comparable price to the neighborhood. She had the whole house upgraded in the electrical system which cost $32,003.00. She must buy her work supplies costing $343.99, and periodicals about beauty to keep up with her industry, costing $411.00. She received dividends of $855.21 and interest income of $1235.87 for the year; she also invested $5,500.00 in a traditional IRA. Her union dues are $1,945.00 for the year and her book club cost her $1,260.00 for the year. Her personal car was stolen in the parking lot of the bowling alley, it cost her $19,480.00 and the insurance company gave her $9,000.00 to make her whole, which she did not understand because she looked it up online and found that the fair market value is $10,430.00, so she doesnt feel very whole. Since her car was stolen, she has to take the bus to work which cost her $875.00 for the year. She figured out the sales tax for the year that she spent came to $8,354.87. She bought 230 shares of Home Depot stock from her father for $77.00 a share on May 3, 2021, her father purchased those shares on October 11, 1982 for $7.98 per share. He sold 100 shares on November 19, 2021, for $82.00 per share. She has inherited an apartment building with 10 units from her uncle who died on June 4, 2021, when the fair market value of the building was $899,000.00. 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 $905,000.00. The building was rented to full capacity when she took over the building in July, where each tenant paid the same amount, giving her $13222.00 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 $1,450.66, real estate taxes equaling $7,750.00 a month and accumulated depreciation of $ 598,320.00. When she first took it over, she had to replace the roof costing her $14,093.00. She also inherited a gold watch from her uncle, who was an avid watch collector. She sold the watch for $23,650.00 because it was a Captain Kangaroo original edition, this paid for the roof replacement. Her uncle purchased the watch for $8,100.00 on January 20, 1988. Because the interest rates for first time home buyers have dropped to 3.4% more people want to move into Isabellas neighborhood and she received an offer on her house of $505,000. Shes excited about this and wants to know the tax ramifications if she sells next year.

A) Prepare Isabellas tax return for 2021 and answer any questions that she might have about the potential sale of her property.