John Fuji (birthdate June 6, 1983) received Form W-2 from his employer related to his job as a manager at a Washington apple-processing plant (see separate tab).

John has income reported to him on a 1099-DIV from his investment in mutual funds (see separate tab).

Also, in accordance with the January 2016 divorce decree John receives $500 per month alimony from his ex-wife (Dora Fuji, Social Security number 573-79-6075) in 2022.

On December 30, 2022, John sold his primary residence after living there since October 2012. The selling price was $561,000 and his basis was $292,000. The closing statement for the sale indicated that John owed property taxes of $323 at the time of the closing and the buyer reduced John's proceeds to $560,677 as a result. The $323 of property taxes is not reflected on Johns Form 1098 (see separate tab).

John tried his hand at day trading for one week in February 2022. He received a substitute Form 1099-B from his broker. Because the IRS was provided the acquisition date and basis for all trades and none required any adjustments or codes, these can be entered as a summary entry into Schedule D and no Form 8949 needs to be prepared.

During 2022, John paid the following amounts (all of which can be substantiated):

Auto loan interest	1,575
Credit card interest	655
State sales tax (actual exceeds estimated)	2,022
Doctor bills	4,000
Other deductible medical expenses	1,800
Income tax preparation fee	500
Job-hunting expenses	925
Cash charitable donation to the Jonagold Research Center	2,500
Federal estimated tax payment 12/30/2022	5,000

Johns employer offers a retirement plan, but John does not participate. Instead, he made a $6,000 contribution to a Roth IRA.

John owns a condo in Seattle that he lived in years ago and now rents. His rental condo is located at 1012 E Terrace Street Unit 1204, Seattle, WA 98122 and was rented all year to his tenant. The tenant occupied the home on January 1, 2022 and pays rent of $2,000 per month for each month of 2022 (a 12-month lease). John demanded first and last month rent and a security deposit of $500 and all were paid January 1, 2022. Upon the tenants departure on December 31, John noted damages and is going to retain $200 of the security deposit. Johns rental expenses for the year are:

Mortgage interest	$9,500
Real estate taxes	7,000
Insurance	2,000
Depreciation (fully depreciated)	0
Repairs	1,000
Homeowners association fees	5,600

John actively manages the rental home. He probably spends about seven hours per month on the rental.

Required: Complete Johns federal tax return for 2022. Use Form 1040, Schedule 1, Schedule A, and Schedule D as needed to complete this tax return. Make realistic assumptions about any missing data.

• Make realistic assumptions about any missing data.
• John has health coverage for the entire year and he does not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers.
• 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.

Summary:

W2

Wages-$80,125

Federal $10,100

Social Security Wages $80,125

Social Security Withheld $4968

Medicare $80,125

Medicare Withheld $1162

Dividends and Distributions

Total Ordinary dividends $4,000

Qualified Dividends $4,000

Total Capital Gain $1,200

Mortgage Interest Statement

Interest received $9835

Outstanding Mortgage Principal $302,459

Mortgage origination date 10/01/2012

Prop Tax $3480

Please Help with the 1040 and the Capital Gains and Losses Schedule D