Kiara and Brock Smith are married and file a joint return.

Kiara's Social Security number is 500-50-1177 and her birth date is 7/10/1960.

Brock's social security number is 101-05-2255 and his birth date is 7/12/1950.

They live at 356 Wisteria Lane, Woodbury, WA 84653. They report their income on the cash method.

Other Data

Brock is retired. His social security income in box 3 and 5 is $16,973.

During 2022, they report the following items:

• Interest income from money market accounts $100
• Qualified Dividend income from Davis Corp. stock $700
• Cash contributions to church $9,000

Rental of a condominium in Lutsen:

• Rental income $16,750
• Interest expense $8,000
• Property taxes $3,600
• Maintenance $1,200
• Insurance $950
• Depreciation for the year $8,000 (Enter the asset with purchase date 12/1/2021 and purchase price $220,000.)
• Days of personal use 0
• The address of the Condo is 5246 Skyline Drive, Lutsen, WA 84666.
• They actively participate in the business of their rental.

Forms

Tax Year: 2022 Form W-2 Employer FEIN/SSN: 86-0291542 State WH ID Number: 86-0291542 Employee Name Kiara Smith Employer Name: Memory Lane Corp Employer Street Address: 1212 W. Washington City: Woodbury State: WA Zip Code: 84653 W-2 Box Total (1) Wages, Tips, Other - $106,000.00 (2) Fed. Income Tax Withheld - $1,200.00 (3) Social Security Wages - $106,000.00 (4) Social Security Tax Withheld - $6,572.00 (5) Medicare Wages and Tips - $106,000.00 (6) Medicare Tax Withheld - $1,537.00 (16) State Wages, Tips, etc. - $106,000.00 (17) State Income Tax - $7,500.00

Form 1098 for personal residence

Lender's TIN: 67-123456

Borrower's TIN: 527-01-1115

Lender's address: PO Box 8068

Virginia Beach, VA 23450

Box 1: 8,600

Box 6: 3,800

Brock is not employed

During the year the following events also occur:

1. In 2019, Brock had loaned a friend $3,000 to help pay medical bills. During 2022, he discovers that his "friend" has skipped town.
2. Nick had gambling losses in the amount of $5,000.
3. Instead of accepting $60 the utility store offers for their old dishwasher, they donate it to Goodwill on November 21, 2022. They purchased the dishwasher for $750 on March 30, 2008. The new dishwasher cost $900.
4. They pay $5,100 in property taxes on their residence.
5. Cash contributions to the local charity $20,000.

Complete Kiara and Brock's Form 1040 for tax year 2022, Schedules A, B, D, and E, Form 8283 and Form 8949.

For purposes of this problem, disregard the alternative minimum tax and any credits.