Question
Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents (which are located on separate tabs in the problem):
Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents (which are located on separate tabs in the problem):
- W-2 Form
- Form 1099-INT
- Form 1099-DIV
- Form 1099-B
During the year, Lisa paid the following amounts (all of which can be substantiated):
Home mortgage interest $9250
KS state income tax payment for 2016$425
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
On January 28, 2017, Lisa sold raw land for $180,000 (basis to Lisa of $135,000). The land was purchased 6 years ago. She received $25,000 as a down payment and the buyer's 10-year note for $155,000. The note is payable at the rate of $15,500 per year plus 8 percent interest. On January 28, 2018, the first of the ten principal and interest payments is due.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started