Kurt and Ashley Tallo (SSNs 412-34-5670 and 412-34-5671), married filing jointly, reside at 1901 Princess Avenue, Park City, UT 84060. Kurt does not work outside the home. Ashleys W-2 shows the following:

Wages $ 340,000

Federal withholding 65,000

Social security wages 137,700

Social security withholding 8,537

Medicare withholding 6,190

State withholding 23,800

The Tallos also have the following: Mortgage interest $ 12,600

Charitable contributions $ 10,000 Kurt and Ashley have four passive activities.

They received K-1s from four partnerships with the following income or loss on line 1. They are at risk in each activity, so the passive loss rules are the only obstacle. Activity 1 $ (40,000) Activity 2 (20,000) Activity 3 (10,000) Activity 4 63,000

Prepare Form 1040 for the Tallos for 2021. You will need Form 1040, Schedule A, Schedule 2, Schedule E (page 2), Form 6251, Form 8959, and Form 8582.