Lisa Kohl (age 44) is a single taxpayer and she lives at 212 Quivira Road, Overland Park, KS 66210. Her Social Security number is 467-98-9784. Lisa's earnings and income tax withholding as the principal of the local high school for 2016 are:

Earnings	$55,700
Federal income tax withheld	7,800
State income tax withheld	700

Lisa's other income includes qualifying dividends on Johnson Corporation stock of $4,050 and interest on a certificate of deposit at Olathe National Bank of $250. In April 2016, Lisa paid $475 due on her 2015 Kansas state income tax.

During the year, Lisa paid the following amounts (all of which can be substantiated):

Home mortgage interest	$9,250
MasterCard interest	550
Life insurance (whole life policy)	750
Property taxes on personal residence	1,425
Blue Cross medical insurance premiums	250
Other medical expenses	780
Income tax preparation fee	300
Charitable contributions (in cash)	730

Lisa had one stock transaction in 2016. Lisa received the following Form 1099-B from her sale of Johnson Corporation stock. All stock sales must be reported both to taxpayers and to the IRS on Form 1099-B so the proceeds can be matched by the IRS to each tax return. Lisa purchased the stock on August 31, 2015, for $43,100 before the stock plummeted in the last months of 2015.

? VOID

? CORRECTED (if checked)

PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no.

Big Brokerage Company

123 Wall Street

New York, NY 10014

Applicable check box on Form 8949

OMB No. 1545-0715 2016 Form 1099-B

Proceeds From Broker and Barter Exchange Transactions

1a Description of property (Example 100 sh. XYZ Co.) 100 shares Johnson Corp.

1b Date acquired 08/31/2015

1c Date sold or disposed 02/05/2016

Copy B For Recipient

This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.

PAYER'S federal identification number

11-0010011

RECIPIENT'S identification number

467-98-9784

1d Proceeds $ 17,200.00

1e Cost or other basis $ 43,100.00

1f Accrued market discount $

1g Wash sale loss disallowed $

RECIPIENT'S name

Lisa Kohl

2

Short-term gain or loss	?
Long-term gain or loss	?
Ordinary	?

3 If checked, basis reported to IRS

?

Street address (including apt. no.)

212 Quivira Road

4 Federal income tax withheld $

5 If checked, noncovered security

City or town, state or province, country, and ZIP or foreign postal code

Overland Park, KS 66210

6 Reported to IRS:

Gross proceeds	?
Net proceeds	?

7 If checked, loss is not allowed based on amount in 1d

?

Account number (see instructions)

8 Profit or (loss) realized in 2016 on closed contracts $

9 Unrealized profit or (loss) on open contracts12/31/2015 $

CUSIP number

FATCA filing requirement

?

10 Unrealized profit or (loss) on open contracts12/31/2016 $

11 Aggregate profit or (loss) on contracts $

14 State name

15 State identification no.

16 State tax withheld $

12 Check if proceeds from collectibles ?

13 Bartering

$

$

Form 1099-B

(Keep for your records)

www.irs.gov/form1099b

Department of the Treasury - Internal Revenue Service

On January 28, 2016, Lisa sold raw land for $180,000 (basis to Lisa of $120,000). The land was purchased 6 years ago. She received $45,000 as a down payment and the buyer's 10-year note for $135,000. The note is payable at the rate of $13,500 per year plus 8 percent interest. On January 28, 2017, the first of the ten principal and interest payments is due.

Required:

Complete Lisa's federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, Schedule D, Form 8949, the Qualified Dividends and Capital Gain Tax Worksheet, and Form 6252 to complete this tax return. Make realistic assumptions about any missing data.

Click here to access the tax table to use for this problem.

If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. If an amount box does not require an entry or the answer is zero, enter "0".

If required, round your final answers to the nearest dollar. For the installment sale, round percentages to five decimal places (i.e. .44568).