Question
Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents: During the year, Lisa paid the following amounts (all
Lisa Kohl (age 44) is an unmarried high school principal. Lisa received the following tax documents:
During the year, Lisa paid the following amounts (all of which can be substantiated):
Home mortgage interest
$9,250
KS state income tax payment for 2017
$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
Lisa's sole stock transaction was reported to her on a Form 1099-B:
On January 28, 2018, 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, 2019, the first of the ten principal and interest payments is due.
Required: Complete Lisa's federal tax return for 2018. Use Form 1040, Schedule 1, 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.
How do I go about filling out this return?
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