Note: This problem is for the 2021 tax year. Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2019. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2021, he had the following recelpts: Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2021. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St, Louis was purchased on May 2,2016, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5 , 2021 , for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e. 9 - camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's expenditures for 2021 include the following: While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ( $200 per month) each year to his church. On December 5,2021 , upon the advice of his pastor, he prepaid his pledge for 2022. Logan's household, ail of whom he supports, includes the following: Heien recelves 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. Federal income tax of 54,200 was withheid from his wages, 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. Federal income tax of $4,200 was withheld from his wages, Required: Compute Logan's income tax for 2021. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Secunity and Medicare taxes were withheld. Logan received the appropriate coronavirus recovery rebates (economic impact payments); related questions in Proconnect Tax should be ignored. 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. - Make realistic assumptions about any missing data. - Enter all amounts as positive numbers except any losses. Use the minus sign to indicate a loss. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - It may be necessary to complete the other tax schedules before completing Form 1040. - Use the included tax rate schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. \begin{tabular}{ll|l|l|l} 1040 & U.S. Individual Income Tax Return & 2021 & oMB No. 1545-0074 & IRS Use Only \\ \hline Filing Status Oualifying widow(er)(OW) \end{tabular} Standard Deduction Age/Blindness You: None Spouse: None e? rut Unserenure, Frivacy Mct, and Faperwork neducton Act Notice, see separate instructions, 22 Subtract line 21 from line 18. If zero or less, enter 0 23 Other taxes, including self-employment tax, from Schedule 2 , line 21 24 Add lines 22 and 23 . This is your total tax - 25 Federal income tax withheld from: Name(s) shown on Form 1040 or 1040SR Logan B. Taylor Caution: Do not include expenses reimbursed or poid by others. Taxes You 5 State and local taxes. Complete Logan's Schedule D for 2021. Use the minus sign to indicate a loss. Part II Long-Term Capital Gains and Losses - Generally Assets Held More Than One Year (see instructions) Schedule D (Form 1040 ) 2021 16 Part Ir Combine lines 7 and 15 and enter the result - If line 16 is a gain, enter the amount from line 16 on form 1040,1040SR, or 1040NR, line 7 , 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 - 0 - on Form 1040,1040SR, or 1040 -NR, line 7. Then, 90 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. 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions). 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 . 20 Are lines 18 and 19 both zero or blank and are you not filing Form 4952 ? Yes, Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. 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, 1040-SR, or 1040-NR, line 7, the smaller of: - 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, 1040-SR, or 1040-NR, line 3 a? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 10405R, tine 16. Qo. Complete the rest of form 1040,10405R, or 1040NR. Schedule D (Form 1040) 2021 Compute Logan's Form 8949 below. Note: Only page 2 of the form is required to be completed for this problem and is provided below. 2 Totals. Add the amounts in columns (d), (e), (9), and (h) (subtract negative amounts). Enter each total here and include on your Sched ule D, line 8b (it Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) Single-Schedule X Note: This problem is for the 2021 tax year. Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2019. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2021, he had the following recelpts: Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2021. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St, Louis was purchased on May 2,2016, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5 , 2021 , for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e. 9 - camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's expenditures for 2021 include the following: While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ( $200 per month) each year to his church. On December 5,2021 , upon the advice of his pastor, he prepaid his pledge for 2022. Logan's household, ail of whom he supports, includes the following: Heien recelves 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. Federal income tax of 54,200 was withheid from his wages, 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. Federal income tax of $4,200 was withheld from his wages, Required: Compute Logan's income tax for 2021. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Secunity and Medicare taxes were withheld. Logan received the appropriate coronavirus recovery rebates (economic impact payments); related questions in Proconnect Tax should be ignored. 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. - Make realistic assumptions about any missing data. - Enter all amounts as positive numbers except any losses. Use the minus sign to indicate a loss. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - It may be necessary to complete the other tax schedules before completing Form 1040. - Use the included tax rate schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. \begin{tabular}{ll|l|l|l} 1040 & U.S. Individual Income Tax Return & 2021 & oMB No. 1545-0074 & IRS Use Only \\ \hline Filing Status Oualifying widow(er)(OW) \end{tabular} Standard Deduction Age/Blindness You: None Spouse: None e? rut Unserenure, Frivacy Mct, and Faperwork neducton Act Notice, see separate instructions, 22 Subtract line 21 from line 18. If zero or less, enter 0 23 Other taxes, including self-employment tax, from Schedule 2 , line 21 24 Add lines 22 and 23 . This is your total tax - 25 Federal income tax withheld from: Name(s) shown on Form 1040 or 1040SR Logan B. Taylor Caution: Do not include expenses reimbursed or poid by others. Taxes You 5 State and local taxes. Complete Logan's Schedule D for 2021. Use the minus sign to indicate a loss. Part II Long-Term Capital Gains and Losses - Generally Assets Held More Than One Year (see instructions) Schedule D (Form 1040 ) 2021 16 Part Ir Combine lines 7 and 15 and enter the result - If line 16 is a gain, enter the amount from line 16 on form 1040,1040SR, or 1040NR, line 7 , 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 - 0 - on Form 1040,1040SR, or 1040 -NR, line 7. Then, 90 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. 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions). 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 . 20 Are lines 18 and 19 both zero or blank and are you not filing Form 4952 ? Yes, Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. 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, 1040-SR, or 1040-NR, line 7, the smaller of: - 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, 1040-SR, or 1040-NR, line 3 a? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 10405R, tine 16. Qo. Complete the rest of form 1040,10405R, or 1040NR. Schedule D (Form 1040) 2021 Compute Logan's Form 8949 below. Note: Only page 2 of the form is required to be completed for this problem and is provided below. 2 Totals. Add the amounts in columns (d), (e), (9), and (h) (subtract negative amounts). Enter each total here and include on your Sched ule D, line 8b (it Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) Single-Schedule X