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Jordan (SSN 150-66-7788) and Diana (SSN 150-67-4321) Diego are a married couple who reside at 111 Coral Drive in Miami, FL 33156. They have one

Jordan (SSN 150-66-7788) and Diana (SSN 150-67-4321) Diego are a married couple who reside at 111 Coral Drive in Miami, FL 33156. They have one dependent daughter, Emily (SSN 155-88-4321), age 18, who lives at home.

Jordan is a manager at Big Box Corporation. His Form W-2 wages are $88,000 and federal income tax withheld is $12,300. The correct payroll taxes were withheld.

Diana worked at a local department store for the first half of the year. Her Form W-2 wages are $45,000 and federal income tax is $3,300. The correct payroll taxes were also withheld.

The Diego family paid $15,200 interest on their home mortgage (reported to them by the mortgage company on Form 1098). The Diego family also owns a vacation home in Breckenridge, Colorado, for which they paid $4,100 of mortgage interest. (This is qualified mortgage interest for a second home.)

The Diego family paid real estate taxes on their principal residence of $5,400, $2,000 of real estate taxes on their vacation home and $3,200 of sales taxes during the year.

The vacation home in Breckenridge was rented out for 120 days during the year for which they received $12,000 in rental income. Jordan and Diana made significant decisions such as approving new tenants while a local management company handled the day-to-day needs. The Diego family used it for 30 days for a personal vacation during the year. Other expenses for the year for this vacation home (excluding interest and taxes mentioned above) were: $700 for real estate management fees paid to a local agent who handles the rental of the property, insurance expense $2,200, repairs expense $500, and utilities expense $1,800. Their depreciation expense for the rental use of this property for the year is $1,455. They use the IRS formula for allocating interest and taxes.

The Diego family contributed $4,000 cash to their church and they have the necessary documentation for this contribution.

In August, Diana quit her job and began a consulting business. The business code is 541990. She is operating the business under her own name and rented a small office at 1234 Coral Way, Coral Gables, FL 33146. Since Diana began her business so late in the year, her consulting income was only $8,000. She incurred the following expenses: $475 supplies, $210 telephone, $3,200 office rent, and $325 advertising. In addition, Diana drove her two-year old Lexus on business 750 miles to visit prospective and current clients. This car was also driven 7,000 miles for personal use. She materially participated in the business and did not make any payments that would require filing Form 1099.

Jordan was born on April 1, 1975; Diana was born May 1, 1976. They have health insurance for the entire family through Jordan's employer. They have no foreign accounts. Based on the information above prepare a form 1040, Schedule 1, Schedule 4, Schedule A, Schedule C-EZ, Schedule E and Schedule SE using 2018 forms

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