Question
need help please, Justin Stone was an employee of DataCare Services, Inc. His salary was $25,000. He withheld $3,000 for Federal Income Tax, His Social
need help please,
Justin Stone was an employee of DataCare Services, Inc. His salary was $25,000. He withheld $3,000 for Federal Income Tax, His Social Security number is 111-11-1111. (5 points)
Justin is age 38; is single, and has no dependents. Justin did not have any itemized deductions. (5 points)
Justin purchased his primary residence on 6/1/1990 for $100,000. He sold it on 1/5/2021 for $372,000. He bought a new primary residence on 1/6/2021 for $400,000. He paid a sales commission of $20,000 on the sale of his primary residence. (15 points)
Justin had a rental property that he bought on 1/1/2017 for $400,000. $200,000 of the $400,000 purchase price was allocated to land, and $200,000 of the $400,000 purchase price was allocated to building. Justin sold it on 7/10/2021 for $500,000. Justin had no rental income or rental expenses, other than depreciation for the rental property in 2021. Justin bought a new rental property on 8/1/2021. The new rental propertys fair market value was $499,000. Justin also received a gift card to the House of Prime Rib restaurant in San Francisco for $1,000 in conjuction with the purchase of the new rental property on 8/1/2020. Justin received the gift card from the seller of the new rental property that he bought on 8/1/2020. Justin qualifies for a Section 1031 Like Kind Exchange, and elects to conduct a Section 1031 Like Kind Exchange on this transaction. (25 points)
For the purpose of this problem, Justin did not have any revenue or expenses on the new rental house that he purchased on 8/1/2021. Do not report any revenue or expenses for the new rental house that Justin bought on 8/1/2021.
Complete tax return, include computing the total tax due, any amount of refund or tax owed, for Justin Stone (10 points)
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