Need help with form 8582 and schedule e.

Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab). The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: $12,100 8,600 5,200 Rental income Mortgage interest reported on Form 1098 Homeowners' association dues Utilities Maintenance Depreciation (assume fully depreciated) 1,200 3,800 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. Required: Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "0". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: OMB No. 1545-0008 Safe, accurate, FAST! Use IRS e n file Visit the IRS website at www.irs.gov/efile a Employee's social security number 700-01-0002 b Employer identification number (EIN) 31-1239867 1 Wages, tips, other compensation 51,200.00 2 Federal income tax withheld 4,310.00 C Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 1 Social security tips 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control number 10 Dependent care benefits Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Last name Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 DD $7,900.00 12b 13 Statutory employee Retirement Third-party plan sick pay 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID number 17 State income 18 Local wages, tips, etc. 20 Locality name 19 Local income tax etc. tax NV Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax Ctatamant 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. The Blacks received the following 1099-DIV from their mutual fund investments: - CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, la Total ordinary country, ZIP or foreign postal code, and telephone no. dividends $ 1,425.00 1b Qualified dividends Cyber Funds Equities Fund 41 Wall Street New York, NY 10005 OMB No. 1545-0110 Dividends 2019 and Distributions Form 1099-DIV 2b Unrecap. Sec. 1250 gain $ 1,002.00 2a Total capital gain distr. $ $ 6,540.34 2c Section 1202 gain PAYER'S TIN RECIPIENT'S TIN 2d Collectibles (28%) gain 17-1234326 222-43-7690 $ $ RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld Copy B Skylar B. Black $ VA For Recipient For Recipient 6 6 Investment expenses 5 Section 1994 dividends $ Street address (including apt. no.) 7 Foreign tax paid 883 Scrub Brush Street #52B City or town, state or province, country, and ZIP or foreign postal code 9 Cash liquidation distributions $ This is important tax information and is being 8 Foreign country or U.S. furnished to the IRS. If possession you are required to file a return, a negligence penalty or other 10 Noncash liquidation sanction may be distributions imposed on you if this income is taxable and the IRS determines that it has not been reported. 12 Specified private activity bond interest dividends $ Las Vegas, NV 89125 FATCA filing 11 Exempt-interest requirement dividends Account number (see instructions) 13 State 14 State 15 State tax withheld identification $ no $ Form 1099-DIV (keep for your records) www.irs.gov/Form 1099DIV Department of the Treasury - Internal Revenue Service Form 1040 Complete Form 1040 for Walter and Skylar Black. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Married filing jointly Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 Last name Spouse's social security If joint return, spouse's first name and middle initial Black number Skylar 222-43-7690 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election 883 Scrub Brush Street 52B Campaign Check here if you, or your spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below if filing jointly, want $3 to go to this fund. Checking a box below (see instructions). will not change your tax or Las Vegas, NV 89125 refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Standard Someone can claim: None Deduction You: None Age/Blindness Spouse: None Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): Child tax credit Credit for other dependents (1) First name Last name Rebecca Blackin 411-66-2121 Father No Yes Alton Black 343-22-8899 Mother No Yes 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 51,200 2a 2b 1,425 3b b Taxable interest. Attach Sch. B 2a Tax-exempt interest .. if required b Ordinary dividends. Attach 3a Qualified dividends... 1,002 Sch. B if required 4a IRA distributions ..... 4a b Taxable amount c Pensions and annuities 4c d Taxable amount 5a Social security benefits 5a b Taxable amount. 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 4b 4d 5b 6 21,540 Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under Standard Deduction, see instructions. 7a Other income from Schedule 1, line 9.... 7a -5,290 7 7b 68,875 8a 8b 68,875 b Add lines 1, 2b, 3b, 46, 4d, 5b, 6, and 7a. This is your total income. 8a Adjustments to income from Schedule 1, line 22. b Subtract line 8a from line 7b. This is your adjusted gross income. 9 Standard deduction or itemized deductions (from Schedule A)..... 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A.... 9 24,400 10 11a Add lines 9 and 10 11a 24,400 11b 44,475 b Taxable income. Subtract line 11a from line 8b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) Form 1040 (2019) 700-01-0002 Page 2 12a 2,243 Walter and Skylar Black 12a Tax (see inst.) Check if any from Form(s): 1 - 8814 2 - 4972 3 b Add Schedule 2, line 3, and line 12a and enter the total . 13a Child tax credit or credit for other dependents .. b Add Schedule 3, line 7, and line 13a and enter the total . 12b 2,243 13a 1,000 13b 1,000 14 14 1,243 15 15 16 1,243 17 17 4,310 18 18a If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. Subtract line 136 from line 12b. If zero or less, enter- Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax . . Federal income tax withheld from Forms W-2 and 1099. Other payments and refundable credits: .. a Earned income credit (EIC).... b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14. 18d e Add lines 18a through 18d. These are your total other payments and refundable credits Add lines 17 and 18e. These are your total payments. 18e 19 19 4,310 Refund 20 3,067 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid. 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here - Routing number Type: - Checking - Savings 21a 3,067 Direct deposit? See instructions. 22 Amount Account number 22 Amount of line 20 you want applied to your 2020 estimated tax... 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions... 24 Estimated tax penalty (see instructions).. Do you want to allow another person (other than your paid preparer) to discuss this return with o Yes. Complete below. the IRS? See instructions. No 23 You Owe 24 Third Party Designee (Other than paid preparer) Sign Here Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Teacher (see inst.) Joint return? See instructions. Keep a copy for your records. Spouse's signature. If a joint Date return, both must sign. Spouse's occupation If the IRS sent your spouse an Stay-at-Home Parent Identity Protection PIN, enter it here (see inst.) Schedule 1 Complete Schedule 1 for Walter and Skylar Black. 1 SCHEDULE 1 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Walter and Skylar Black 700-01-0002 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C., Other gains or losses). Attach Form 4797. Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E -5,290 Farm income or loss). Attach Schedule F Unemployment compensation .. Other income. List type and amount 2a 3 3 4 4 5 5 6 6 7 7 8 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 -5,290 11 13 15 16 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 .. 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE... 14 15 Self-employed SEP, SIMPLE, and qualified plans. 16 Self-employed health insurance deduction. 17 Penalty on early withdrawal of savings. 18a Alimony paid. 18a b Recipient's SSN... c Date of original divorce or separation agreement (see instructions) 19 IRA deduction ... Student loan interest deduction Reserved for future use. 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a..... For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 17 19 20 20 21 22 Schedule D Complete the Blacks' Schedule D. Yes SCHEDULE D OMB No. 1545-0074 Capital Gains and Losses (Form 1040 or 1040-SR) Attach to Form 1040, 1040-SR, or 1040-NR. 2019 Department of the Treasury Go to www.irs.gov/Scheduled for instructions and the latest information. Attachment Internal Revenue Service (99) Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Sequence No. 12 Name(s) shown on return Your social security number Walter and Skylar Black 700-01-0002 Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? No If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part I Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lines (h) Gain or (9) (loss) below. Adjustments to Subtract column (d) (e) gain or loss from Proceeds (sales Cost (or other Form(s) 8949, (e) from column This form may be easier to complete if you round off cents to whole price) basis) (d) and combine Part I, line 2, dollars. the result with column (9) column (9) 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b.... 1b Totals for all transactions reported on Form(s) 8949 with Box A checked... 4 5 2 Totals for all transactions reported on Form(s) 8949 with Box B checked.. 3 Totals for all transactions reported on Form(s) 8949 with Box C checked.... 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8824 ..... 5 Net short-term gain or loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions ... 6 C ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back ..... 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the lines (h) Gain or (9) (loss) below. Adjustments to (d) Subtract column gain or loss from Proceeds (sales Cost (or other Form(s) 8949, (e) from column This form may be easier to complete if you round off cents to whole (d) and combine price) basis) Part II, line 2 dollars. the result with column (9) column (9) Sa Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b.... 8b Totals for all transactions reported on Form(s) 8949 with Box D checked. ... 9 Totals for all transactions reported on Form(s) 8949 with Box E checked... 11 12 10 Totals for all transactions reported on Form(s) 8949 with Box F checked... 604,000 89,000 500,000 15,000 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or loss) from Forms 4684, 6781, and 8824.. 12 Net long-term gain or loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 13 Capital gain distributions. See the instructions ... 6,540 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions ... 14 C ) 15 Net long-term capital gain or loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back..... 15 21,540 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040 or 1040-SR) 2019 13 Page 2 16 21,540 Schedule D (Form 1040 or 1040-SR) 2019 Walter and Skylar Black 700-01-0002 Part IIT Summary 16 Combine lines 7 and 15 and enter the result .. If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter -o- on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet .. 18 0 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet .. 19 o 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. - No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, the smaller of: 21 The loss on line 16; or ($3,000), or if married filing separately, ($1,500) . Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? - Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D (Form 1040 or 1040-SR) 2019 Form 8949 Complete the Blacks' Form 8949. OMB No. 1545-0074 Form 8949 Sales and Other Dispositions of Capital Assets Department of the Go to www.irs.gov/Form8949 for instructions and the latest information. 2019 Treasury Internal File with your Schedule D to list your transactions for lines 1b, 2, 3, 8, 9, and 10 of Attachment Revenue Service Schedule D. Sequence No. 12A Name(s) shown on return Social security number or taxpayer identification number Walter and Skylar Black 700-01-0002 Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part I Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long- term transactions, see page 2 Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. - (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) - (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS - (C) Short-term transactions not reported to you on Form 1099-B 1 (a) Description of property Date acquired (Example: 100 sh.XYZ (Mo., day, y.) Co.) (c) Date sold or disposed of (Mo., day, yr.) (h) Adjustment, if any, to gain or Gain or (e) loss. If you enter an amount in (loss). Cost or other column (g), enter a code in column (d) Subtract basis. See the (f). See the separate instructions. column (e) Proceeds Note below from column (sales price) and see (see (f) (d) and Column (e) in instructions) Code(s) from Amount of combine the the separate instructions result with adjustment instructions column (9) (9) 2 Totals. Add the amounts in columns (d), (e), (), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column () in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2019) Form 8949 (2019) Attachment Sequence No. 12A Page 2 Name(s) shown on return. Name and SSN or taxpayer identification no. not Social security number or taxpayer identification number required if shown on other side Walter and Skylar Black 700-01-0002 Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short- term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (F) Long-term transactions not reported to you on Form 1099-B 1 (a) (e) Cost or other (c) (d) basis. See the (b) Description of property Date sold or Proceeds (sales Note below Date acquired (Example: 100 sh.XYZ disposed of price) (see and see (Mo., day, yr.) Co.) (Mo., day, yr.) instructions) Column (e) in the separate instructions Adjustment, if any, to gain or (h) loss. If you enter an amount in Gain or (loss). column (9), enter a code in Subtract column (f). See the separate column (e) instructions. from column (d) and (9) combine the Code(s) from Amount of result with instructions adjustment column (9) (1) Maine primary residence 07/03/94 01/04/19 604,000 89,000 500,000 15,000 2 Totals. Add the amounts in columns (d), (e), (9), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) 604,000 89,000 500,000 15,000 Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (9) to correct the basis. See Column (9) in the separate instructions for how to figure the amount of the adjustment. Form 8949 (2019) Schedule E Complete the Blacks' Schedule E. Do not round the percentage in your computation. SCHEDULE E OMB No. 1545-0074 Supplemental Income and Loss (Form 1040 or 1040-SR) (From rental real estate, royalties, partnerships, S corporations, estates, 2019 trusts, REMICS, etc.) Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Sequence No. 13 Name(s) shown on return Your social security number Walter and Skylar Black 700-01-0002 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions) If "Yes," did you or will you file required Forms 1099? Yes la Physical address of each property (street, city, state, ZIP code) 123 Buncombe Lane, Brian Head, UT 84719 Yes E No B No A B 1b Type of Property (from list below) 3 QJV Personal Use Days Fair Rental Days 185 2 For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions. A A 15 B O Type of Property: 1 Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 Commercial Properties: 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: A B 12,100 3 4 3 Rents received .. 4 Royalties received Expenses: 5 Advertising .. Auto and travel (see instructions). 7 Cleaning and maintenance. 5 6 6 7 3,515 8 Commissions. 8 9 Insurance .. 9 10 10 Legal and other professional fees Management fees ... 11 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 7,955 13 13 Other interest Repairs 14 14 15 Supplies 15 16 Taxes 16 17 Utilities .. 17 1,110 18 Depreciation expense or depletion. 18 19 Other (list) Homeowners' dues 19 4,810 20 Total expenses. Add lines 5 through 19 20 17,390 21 22 DC ) 23c 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198.... -5,290 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) ..... C 23a Total of all amounts reported on line 3 for all rental properties .. 23a b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties ... d Total of all amounts reported on line 18 for all properties ... 23d e Total of all amounts reported on line 20 for all properties 24 Income. Add positive amounts shown on line 21. Do not include any losses. 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18. Otherwise, include this amount in the total on line 41 on page 23e 24 25 ) 2..... 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040 or 1040-SR) 2019 Form 8582 Complete the Blacks' Form 8582. Note: Only page 1 of the tax form is required. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4, and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. OMB No. 1545-1008 Form 8582 Passive Activity Loss Limitations 2019 See separate instructions. Department of the Treasury Attach to Form 1040, Form 1040-SR, or Form 1041. Attachment Internal Revenue Service (99) Go to www.irs.gov/Form8582 for instructions and the latest information. Sequence No. 88 Name(s) shown on return Identifying number Walter and Skylar Black 700-01-0002 Part I 2019 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) Activities with net income (enter the amount from Worksheet 1, column (a)) Activities with net loss (enter the amount from Worksheet 1, column (b)) 1b 5,290 ) Prior years' unallowed losses (enter the amount from Worksheet 1, column (c))..... 1c ) d Combine lines 1a, 1b, and 1c. -5,290 Commercial Revitalization Deductions From Rental Real Estate Activities Commercial revitalization deductions from Worksheet 2 column (a).... 2a ) b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b).... 2b la la b 1d 2a 4 Add lines 2a and 2b... 22 ( All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)) 3a b Activities with net loss (enter the amount from Worksheet 3, column (b)) 3b | ) Prior years' unallowed losses (enter the amount from Worksheet 3, column (c)).... c | ) d Combine lines 3a, 3b, and 3c... 3d Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used .. -5,290 If line 4 is a loss and: Line 1d is a loss, go to Part II. Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss and lines 1d and 2c are zero or more), skip Parts II and III and go to line 15. Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part II as positive amounts. See instructions for an example. Enter the smaller of the loss on line 1d or the loss on line 4 5,290 Enter $150,000. If married filing separately, see instructions. 150,000 7 Enter modified adjusted gross income, but not less than zero. See instructions... 68,875 X Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter-O- on line 10. Otherwise, go to line 8. 5 5 6 6 7 8 Subtract line 7 from line 6... 8 9 9 10 11 Multiply line 8 by 50% (0.5). Do not enter more than $25,000. If married filing separately, see instructions 10 Enter the smaller of line 5 or line 9. If line 2c is a loss, go to Part III. Otherwise, go to line 15. Part III Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part III as positive amounts. See the example for Part II in the instructions. 11 Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions 12 Enter the loss from line 4.. 13 Reduce line 12 by the amount on line 10. 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 Part IV Total Losses Allowed 15 Add the income, if any, on lines 1a and 3a and enter the total.. 16 Total losses allowed from all passive activities for 2019. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return.. 16 For Paperwork Reduction Act Notice, see instructions. Cat. No. 63704F 12 14 15 Form 8582 (2019) Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab). The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: $12,100 8,600 5,200 Rental income Mortgage interest reported on Form 1098 Homeowners' association dues Utilities Maintenance Depreciation (assume fully depreciated) 1,200 3,800 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. Required: Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "0". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: OMB No. 1545-0008 Safe, accurate, FAST! Use IRS e n file Visit the IRS website at www.irs.gov/efile a Employee's social security number 700-01-0002 b Employer identification number (EIN) 31-1239867 1 Wages, tips, other compensation 51,200.00 2 Federal income tax withheld 4,310.00 C Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 1 Social security tips 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control number 10 Dependent care benefits Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Last name Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 DD $7,900.00 12b 13 Statutory employee Retirement Third-party plan sick pay 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID number 17 State income 18 Local wages, tips, etc. 20 Locality name 19 Local income tax etc. tax NV Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax Ctatamant 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. The Blacks received the following 1099-DIV from their mutual fund investments: - CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, la Total ordinary country, ZIP or foreign postal code, and telephone no. dividends $ 1,425.00 1b Qualified dividends Cyber Funds Equities Fund 41 Wall Street New York, NY 10005 OMB No. 1545-0110 Dividends 2019 and Distributions Form 1099-DIV 2b Unrecap. Sec. 1250 gain $ 1,002.00 2a Total capital gain distr. $ $ 6,540.34 2c Section 1202 gain PAYER'S TIN RECIPIENT'S TIN 2d Collectibles (28%) gain 17-1234326 222-43-7690 $ $ RECIPIENT'S name 3 Nondividend distributions 4 Federal income tax withheld Copy B Skylar B. Black $ VA For Recipient For Recipient 6 6 Investment expenses 5 Section 1994 dividends $ Street address (including apt. no.) 7 Foreign tax paid 883 Scrub Brush Street #52B City or town, state or province, country, and ZIP or foreign postal code 9 Cash liquidation distributions $ This is important tax information and is being 8 Foreign country or U.S. furnished to the IRS. If possession you are required to file a return, a negligence penalty or other 10 Noncash liquidation sanction may be distributions imposed on you if this income is taxable and the IRS determines that it has not been reported. 12 Specified private activity bond interest dividends $ Las Vegas, NV 89125 FATCA filing 11 Exempt-interest requirement dividends Account number (see instructions) 13 State 14 State 15 State tax withheld identification $ no $ Form 1099-DIV (keep for your records) www.irs.gov/Form 1099DIV Department of the Treasury - Internal Revenue Service Form 1040 Complete Form 1040 for Walter and Skylar Black. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Married filing jointly Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 Last name Spouse's social security If joint return, spouse's first name and middle initial Black number Skylar 222-43-7690 Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election 883 Scrub Brush Street 52B Campaign Check here if you, or your spouse City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below if filing jointly, want $3 to go to this fund. Checking a box below (see instructions). will not change your tax or Las Vegas, NV 89125 refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Standard Someone can claim: None Deduction You: None Age/Blindness Spouse: None Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): Child tax credit Credit for other dependents (1) First name Last name Rebecca Blackin 411-66-2121 Father No Yes Alton Black 343-22-8899 Mother No Yes 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 51,200 2a 2b 1,425 3b b Taxable interest. Attach Sch. B 2a Tax-exempt interest .. if required b Ordinary dividends. Attach 3a Qualified dividends... 1,002 Sch. B if required 4a IRA distributions ..... 4a b Taxable amount c Pensions and annuities 4c d Taxable amount 5a Social security benefits 5a b Taxable amount. 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 4b 4d 5b 6 21,540 Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under Standard Deduction, see instructions. 7a Other income from Schedule 1, line 9.... 7a -5,290 7 7b 68,875 8a 8b 68,875 b Add lines 1, 2b, 3b, 46, 4d, 5b, 6, and 7a. This is your total income. 8a Adjustments to income from Schedule 1, line 22. b Subtract line 8a from line 7b. This is your adjusted gross income. 9 Standard deduction or itemized deductions (from Schedule A)..... 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A.... 9 24,400 10 11a Add lines 9 and 10 11a 24,400 11b 44,475 b Taxable income. Subtract line 11a from line 8b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) Form 1040 (2019) 700-01-0002 Page 2 12a 2,243 Walter and Skylar Black 12a Tax (see inst.) Check if any from Form(s): 1 - 8814 2 - 4972 3 b Add Schedule 2, line 3, and line 12a and enter the total . 13a Child tax credit or credit for other dependents .. b Add Schedule 3, line 7, and line 13a and enter the total . 12b 2,243 13a 1,000 13b 1,000 14 14 1,243 15 15 16 1,243 17 17 4,310 18 18a If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. Subtract line 136 from line 12b. If zero or less, enter- Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax . . Federal income tax withheld from Forms W-2 and 1099. Other payments and refundable credits: .. a Earned income credit (EIC).... b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14. 18d e Add lines 18a through 18d. These are your total other payments and refundable credits Add lines 17 and 18e. These are your total payments. 18e 19 19 4,310 Refund 20 3,067 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid. 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here - Routing number Type: - Checking - Savings 21a 3,067 Direct deposit? See instructions. 22 Amount Account number 22 Amount of line 20 you want applied to your 2020 estimated tax... 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions... 24 Estimated tax penalty (see instructions).. Do you want to allow another person (other than your paid preparer) to discuss this return with o Yes. Complete below. the IRS? See instructions. No 23 You Owe 24 Third Party Designee (Other than paid preparer) Sign Here Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Teacher (see inst.) Joint return? See instructions. Keep a copy for your records. Spouse's signature. If a joint Date return, both must sign. Spouse's occupation If the IRS sent your spouse an Stay-at-Home Parent Identity Protection PIN, enter it here (see inst.) Schedule 1 Complete Schedule 1 for Walter and Skylar Black. 1 SCHEDULE 1 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Walter and Skylar Black 700-01-0002 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C., Other gains or losses). Attach Form 4797. Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E -5,290 Farm income or loss). Attach Schedule F Unemployment compensation .. Other income. List type and amount 2a 3 3 4 4 5 5 6 6 7 7 8 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 -5,290 11 13 15 16 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 .. 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE... 14 15 Self-employed SEP, SIMPLE, and qualified plans. 16 Self-employed health insurance deduction. 17 Penalty on early withdrawal of savings. 18a Alimony paid. 18a b Recipient's SSN... c Date of original divorce or separation agreement (see instructions) 19 IRA deduction ... Student loan interest deduction Reserved for future use. 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a..... For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 17 19 20 20 21 22 Schedule D Complete the Blacks' Schedule D. Yes SCHEDULE D OMB No. 1545-0074 Capital Gains and Losses (Form 1040 or 1040-SR) Attach to Form 1040, 1040-SR, or 1040-NR. 2019 Department of the Treasury Go to www.irs.gov/Scheduled for instructions and the latest information. Attachment Internal Revenue Service (99) Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Sequence No. 12 Name(s) shown on return Your social security number Walter and Skylar Black 700-01-0002 Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? No If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part I Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lines (h) Gain or (9) (loss) below. Adjustments to Subtract column (d) (e) gain or loss from Proceeds (sales Cost (or other Form(s) 8949, (e) from column This form may be easier to complete if you round off cents to whole price) basis) (d) and combine Part I, line 2, dollars. the result with column (9) column (9) 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b.... 1b Totals for all transactions reported on Form(s) 8949 with Box A checked... 4 5 2 Totals for all transactions reported on Form(s) 8949 with Box B checked.. 3 Totals for all transactions reported on Form(s) 8949 with Box C checked.... 4 Short-term gain from Form 6252 and short-term gain or loss) from Forms 4684, 6781, and 8824 ..... 5 Net short-term gain or loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions ... 6 C ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back ..... 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the lines (h) Gain or (9) (loss) below. Adjustments to (d) Subtract column gain or loss from Proceeds (sales Cost (or other Form(s) 8949, (e) from column This form may be easier to complete if you round off cents to whole (d) and combine price) basis) Part II, line 2 dollars. the result with column (9) column (9) Sa Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b.... 8b Totals for all transactions reported on Form(s) 8949 with Box D checked. ... 9 Totals for all transactions reported on Form(s) 8949 with Box E checked... 11 12 10 Totals for all transactions reported on Form(s) 8949 with Box F checked... 604,000 89,000 500,000 15,000 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or loss) from Forms 4684, 6781, and 8824.. 12 Net long-term gain or loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 13 Capital gain distributions. See the instructions ... 6,540 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions ... 14 C ) 15 Net long-term capital gain or loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back..... 15 21,540 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040 or 1040-SR) 2019 13 Page 2 16 21,540 Schedule D (Form 1040 or 1040-SR) 2019 Walter and Skylar Black 700-01-0002 Part IIT Summary 16 Combine lines 7 and 15 and enter the result .. If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter -o- on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet .. 18 0 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet .. 19 o 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. - No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, the smaller of: 21 The loss on line 16; or ($3,000), or if married filing separately, ($1,500) . Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? - Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D (Form 1040 or 1040-SR) 2019 Form 8949 Complete the Blacks' Form 8949. OMB No. 1545-0074 Form 8949 Sales and Other Dispositions of Capital Assets Department of the Go to www.irs.gov/Form8949 for instructions and the latest information. 2019 Treasury Internal File with your Schedule D to list your transactions for lines 1b, 2, 3, 8, 9, and 10 of Attachment Revenue Service Schedule D. Sequence No. 12A Name(s) shown on return Social security number or taxpayer identification number Walter and Skylar Black 700-01-0002 Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part I Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long- term transactions, see page 2 Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. - (A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) - (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS - (C) Short-term transactions not reported to you on Form 1099-B 1 (a) Description of property Date acquired (Example: 100 sh.XYZ (Mo., day, y.) Co.) (c) Date sold or disposed of (Mo., day, yr.) (h) Adjustment, if any, to gain or Gain or (e) loss. If you enter an amount in (loss). Cost or other column (g), enter a code in column (d) Subtract basis. See the (f). See the separate instructions. column (e) Proceeds Note below from column (sales price) and see (see (f) (d) and Column (e) in instructions) Code(s) from Amount of combine the the separate instructions result with adjustment instructions column (9) (9) 2 Totals. Add the amounts in columns (d), (e), (), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked) Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column () in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37768Z Form 8949 (2019) Form 8949 (2019) Attachment Sequence No. 12A Page 2 Name(s) shown on return. Name and SSN or taxpayer identification no. not Social security number or taxpayer identification number required if shown on other side Walter and Skylar Black 700-01-0002 Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short- term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the total directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (F) Long-term transactions not reported to you on Form 1099-B 1 (a) (e) Cost or other (c) (d) basis. See the (b) Description of property Date sold or Proceeds (sales Note below Date acquired (Example: 100 sh.XYZ disposed of price) (see and see (Mo., day, yr.) Co.) (Mo., day, yr.) instructions) Column (e) in the separate instructions Adjustment, if any, to gain or (h) loss. If you enter an amount in Gain or (loss). column (9), enter a code in Subtract column (f). See the separate column (e) instructions. from column (d) and (9) combine the Code(s) from Amount of result with instructions adjustment column (9) (1) Maine primary residence 07/03/94 01/04/19 604,000 89,000 500,000 15,000 2 Totals. Add the amounts in columns (d), (e), (9), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) 604,000 89,000 500,000 15,000 Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (9) to correct the basis. See Column (9) in the separate instructions for how to figure the amount of the adjustment. Form 8949 (2019) Schedule E Complete the Blacks' Schedule E. Do not round the percentage in your computation. SCHEDULE E OMB No. 1545-0074 Supplemental Income and Loss (Form 1040 or 1040-SR) (From rental real estate, royalties, partnerships, S corporations, estates, 2019 trusts, REMICS, etc.) Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Sequence No. 13 Name(s) shown on return Your social security number Walter and Skylar Black 700-01-0002 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions) If "Yes," did you or will you file required Forms 1099? Yes la Physical address of each property (street, city, state, ZIP code) 123 Buncombe Lane, Brian Head, UT 84719 Yes E No B No A B 1b Type of Property (from list below) 3 QJV Personal Use Days Fair Rental Days 185 2 For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions. A A 15 B O Type of Property: 1 Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 Commercial Properties: 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: A B 12,100 3 4 3 Rents received .. 4 Royalties received Expenses: 5 Advertising .. Auto and travel (see instructions). 7 Cleaning and maintenance. 5 6 6 7 3,515 8 Commissions. 8 9 Insurance .. 9 10 10 Legal and other professional fees Management fees ... 11 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 7,955 13 13 Other interest Repairs 14 14 15 Supplies 15 16 Taxes 16 17 Utilities .. 17 1,110 18 Depreciation expense or depletion. 18 19 Other (list) Homeowners' dues 19 4,810 20 Total expenses. Add lines 5 through 19 20 17,390 21 22 DC ) 23c 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198.... -5,290 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) ..... C 23a Total of all amounts reported on line 3 for all rental properties .. 23a b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties ... d Total of all amounts reported on line 18 for all properties ... 23d e Total of all amounts reported on line 20 for all properties 24 Income. Add positive amounts shown on line 21. Do not include any losses. 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18. Otherwise, include this amount in the total on line 41 on page 23e 24 25 ) 2..... 26 For Paperwork Reduction Act Notice, see the separate