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 $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 premium $250
Other medical expenses $780
Income tax preparation fee $300
Charitable contributions (in cash) $730
On January 28, 2018, Lisa sold undeveloped 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 Form 1040, Schedules 1, A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.
Make realistic assumptions about any missing data.
She had health care coverage for the entire year and does not want to make a contribution to the presidential election campaign.
Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
If an amount box does not require an entry or the answer is zero, enter "0".
If required round any dollar amount to the nearest dollar.
W-2 FORM:
Wages, tips, other compensation $56,000
Federal income tax withheld $5,800
Social security wages $56,000
Social security tax withheld $3,472
Medicare wages and tips $56,000
Medicare tax withheld $812
State wages, tips, etc. $56,000
State income tax $750
FORM 1099-INT:
Olathe National Bank
Insterest Income $200
FORM 1099-DIV:
Johnson Corporation
Total ordinary dividends $4100
Qualified dividends $4100
FORM 1099-B:
Big Brokerage Company
100 shares Johnson Corp.
Date acquired 8/31/2017
Proceeds $17100
Date sold or disposed 2/5/2018
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