Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2019, he had the following receipts: Salary $ 80,000 Interest income- Money market account at Omni Bank $ 300 Savings account at Boone State Bank 1,100 City of Springfield general purpose bonds 3,000 4,400 Inheritance from Daniel 60,000 Life insurance proceeds 200,000 Amount from sale of St. Louis lot 80,000 Proceeds from estate sale 9,000 Federal income tax refund (for 2018 tax overpayment) 700 life with a maturity value of $200,000. The lot in St. Louis was purchased c 2019, Logan also was the designated beneficiary of an insurance policy on Daniel's Logan inherited securities worth $60,000 from his uncle, Daniel, who died in that the property sold originally cost at least twice the $9,000 he received and has (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates $80,000. The estate sale consisted largely of items belonging to Sara and Daniel 2014, for $85,000 and held as an investment. Because the neighborhood has dete- A May 2, on January 5, 2019, for riorated, Logan decided to cut his losses and sold the lot on declined or stayed the same in value since Sara and Daniel died, Logan's expenditures for 2019 include the following: $11,500 Medical expenses (including $10,500 for dental) $4,200 Taxes- State of Missouri income tax (includes withholdings during 2019) 4,500 8,700 Property taxes on personal residence Interest on home mortgage (Boone State Bank) Contribution to church (paid pledges for 2019 and 2020) 5,600 4,800 policy, he is subject to a deductible, and dental care is not included. The $10,500 While Logan and his dependents are covered by his employer's health insurance dental charge was for Helen's implants. Helen is Logan's widowed mother, who with him (see below). Logan normally pledges $2,400 ($200 per month) each o to his church. On December 5, 2019, upon the advice of his pastor, he prepaid hie pledge for 2020. Logan's household, all of whom he supports, includes the following: Social Security Number Birth Date 123-45-6787 08/30/1971 Logan Taylor (age 48) Helen Taylor (age 70) Asher Taylor (age 23) Mia Taylor (age 22) 123-45-6780 01/13/1949 123-45-6783 07/18/1996 123-45-6784 02/16/1997 Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married. Write a letter to Logan explaining in general terms the changes that will occur Part 1-Tax Computation Using the appropriate forms and schedules, compute Logan's income tax for 2019. Fed- eral income tax of $4,500 was withheld from his wages. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan does not own and did not use any virtual currency during the year, and he does not want to contribute to the Presidential Election Campaign Fund. Suggested software: ProConnect Tax Online. Part 2-Follou-Up Advice In early 2020, the following take place: Helen decides that she wants to live with one of her daughters and moves to Arizona. Asher graduates from dental school and joins an existing practice in St. Louis. Mia marries, and she and her husband move in with his parents. Using the insurance proceeds he received on Daniel's death, Logan pays off the mortgage on his personal residence. Logan believes that these events may have an effect on his tax position for 202 Therefore, he requests your advice. for tax purposes. Assume that Logan's salary and other factors not mentioned (C property and state income taxes) will remain the same. Go to Settings