Jacob (45) and Cindy (40) Dusting are married and live together. They have two children living with them: Brandon is 20, a full-time student in his second year at Carolina Tech, but is Jacobs son from a previous marriage. Brandons mother gets the dependency exemption. Jacob paid $1200 to his ex-wife, Mary (#233-34-0258) in alimony. Jacob and Cindy pay his school expenses. His 1098-T shows tuition paid of $4,500 and grants received of $2,300. Noda is 5 years old (SS# 437-86-1334) and is their joint child. Cindy works as an accountant in a local company and her W-2 is enclosed. Jacob also works (see W-2.)

Jacob runs a couple of rentals. He makes all the decisions, collects the rents, and does any repairs. His income and expenses are as follows:

Address: Bldg A =215 Church St., Hansville, SC Bldg B= 425 SSide St., Hansville,Sc Type: Single Dwelling house Single Dwelling House Personal days used: -0- -0- Rents received: $20,000 $15,600 Expenses: Maintenance 1,000 400 Repairs 300 1,500 Mortgage Interest 9,000 5,000 Utilities -0- 200 Real estate taxes 1,200 600 In addition to the above, the following information is regarding depreciation: 2/14/01 Purchased Bldg A for $300,000, of which land is $50,000 8/03/04 Purchased Bldg B for $90,000, of which land is $10,000 10/20/15 Purchased new stove for building A, $800 6/04/17 Purchased new refrigerator for building B, $1,200 (Jacob would like to take sec 179 if possible) Jacob had to drive to take care of the rental business, he put in 6,000 miles on his personal car for that, divided equally between buildings A and B. He put a total of 10,000 miles on the car. He has always taken standard mileage. He and Cindy do have another car at home. They received a refund from 2016s taxes from the state of $340 and from the IRS of $260. They did itemize last year. Jacob and Cindy have invested in various funds to save for Noda education. The 1099-INT and 1099-DIV are enclosed. They also received $500 interest from the city of Atlanta bonds.They have the following possible itemized deductions: Property taxes on their house $3,200 Mortgage interest 8,500 Interest on credit cards-pers. 900 Contributions to church 1,200 Complete the Dustings tax return. You do not need to fill in addresses or social security numbers. Assume any information not given. w2s= Cindy (box 1 wages and tips)=$18134.87 (box 2 federal income)=$1123 (box 3 ss wages)=$18134.87 (box 4 sstax withheld)= $1124.36 (box 5 Medicare wages and tips)=$18134.87 (box 6 medicare tax withheld)=$262.96 (box 16 state wg tips etc) = $18134.87 (box 17 state income tax) = $738.00 w2s= Jacob (box 1 wages and tips)=$26813.47 (box 2 federal income)=$2690 (box 3 ss wages)=$26813.47 (box 4 sstax withheld)= $1662.44 (box 5 Medicare wages and tips)=$26813.47 (box 6 medicare tax withheld)=388.80 (box 16 state wages tips etc)= $26813.47 (box 17 state income tax)= $1625.00 1099-INT= Cindy and Jacob (box 1 interest income)= $1800 from CEO Hansville SC 1099-DIV= Jacob (box1a total ordinary dividends)= $900 (box2 qualified dividends)= $500 from DEF Bank Hansville SC