Page B-7

COMPREHENSIVE PROBLEM 6

With Emphasis on Schedule D

Debra Simon is a single taxpayer. She is employed as a corporate attorney and lives at 1400 Sand Dollar Circle, Sandville, FL 33868. Her social security number is 412-34-5670.

For tax year 2016, Debra had the following income information:

Wages	$155,000
Social security withholding	7,347
Medicare withholding	2,248
Federal income tax withheld	34,550
State income tax withheld	-0-
New Bank 1099-INT	5,500
Hope Bank 1099-INT	3,875

Debra had the following stock transactions during 2016. A 1099-B was received for the proceeds of each sale:

Transaction	Purchased	Sold	Proceeds	Cost	Sale Expenses
300 sh. IBM	01/05/09	5/11/16	$ 16,500	$14,100	$ 875
200 sh. SMI	01/05/09	5/15/16	41,000	41,800	2,050
100 sh. BMI	03/05/15	4/12/16	10,500	11,400	525
300 sh. ABC	07/05/16	9/15/16	16,500	14,100	825
300 sh. DDC	05/12/16	10/11/16	45,000	51,000	2,250
300 sh. PPC	01/05/09	5/11/16	5,000	2,800	250
4,000 sh. LLP	Inherited	12/11/16	436,000	*	21,800
1,500 sh. QQM	Inherited	5/11/16	41,325	*	2,066

Debra also sold her wine collection for $38,000. She had purchased the wine on January 5, 2011, for a total of $19,000.

Debra has a capital loss carryover from 2015 of $11,700: $3,000 short-term and $8,700 long-term.

Debra rents a condo (no mortgage interest) and lives in Florida (no state income tax). Thus she claims the standard deduction.

Required

Complete the 2016 tax return for Debra Simon. You do not need to complete the loss carryover worksheet but do need to enter the carryover amount in the appropriate place on Schedule D. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Debra had qualifying health care coverage at all times during the tax year. For any missing information, make reasonable assumptions.