Prepare a 2016 Form 1040 for the individual below. Also prepare Schedules A, B, C, D, E, and Form 8949. All forms are available on irs.gov or on Google search engine if you type Form 1040 or Schedule A . PERSONAL INFORMATION & WAGES

Keisha Sanders, a divorced single taxpayer and practicing attorney, lives at 9551 Oak Leaf Lane in Pine Cove, AZ 86035. Her social security number is 412-34-5670 (date of birth 2/27/1972).

Her W-2 contained the following information:

Wages (box 1) = $83,401.55

Federal W/H (box 2) = $ 9,782.15

Social security wages (box 3) = $83,401.55

Social security W/H (box 4) = $ 5,170.90

Medicare wages (box 5) = $83,401.55

Medicare W/H (box 6) = $ 1,209.32

In addition, Keisha Sanders made alimony payments totaling $9,600 for the year to her former husband Alex, an unemployed mine worker, whose social security number is 412-34-5671. He found an old girlfriend on Facebook from high school; that is why they got divorced.

She made estimated tax payments this year of $10,000 each quarter of 2016.

INTEREST AND DIVIDEND INCOME

Hint: Interest and dividends go on Schedule B. She also received a 1099 INT reporting interest income from Pine Cove Credit Union in the amount of $204.75. She also has interest from a savings account with Local Neighborhood Bank of $250 and a dividend from a Form 1099-DIV of $1,600 in ordinary dividends, of which $1,350 are considered qualified dividends.

STOCK SALES

Hint: Use Form 8949 and Schedule D. She had the following stock transactions for the year:

Stock Shares	Date Purchased	Date Sold	Sale Price	Cost Basis
5,500	7/8/15	9/12/16	$25,000	$18,000
800	3/12/16	10/21/16	43,000	47,000
2,800	2/13/09	10/21/16	30,000	22,000

She also owns 20 shares of Apple stock, which she purchased for $1,000 in 1979. It is now trading at $100,000. She is going to hold onto it for a while.

HOME BUSINESS

Hint: Use Schedule C. Schedule SE is for bonus points, but is not required. She also has a home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2016:

Gross receipts

$43,000

Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2016 Van (over 6,000 lbs) placed in service 1/01/2016, cost $27,000

Postage

(500)

Supplies

(500)

Phone

(1,250)

Rent

(2,400)

Insurance

(2,800)

Van expenses

(4,500)

Plastic surgery to be more attractive to customers (5,000)

Business assets

Date Purchased

Cost

Computer

5/18/16

$2,200

RENTAL PROPERTY

Hint: Use Schedule E, page 1. She owned a home for investment home that was rented for the entire year and is located just one block over at 9021 Jasmine Way in the same town. The following income and expense information relates to the rental activity. Ignore the passive activity rules or limitations (Chapter 11).

Rental income	$27,600
Real estate taxes	7,952
Utilities	1,603
Mortgage interest	2,700
Repairs and maintenance	3,616
Cost of home, purchased March 10, 2014	300,000

PERSONAL EXPENSES

Hint: Use Schedule A.

She also has the following information on her personal and investment expenses:

Interest expense

Home mortgage (qualified residence interest)

$8,100

MasterCard (used exclusively for personal expenses and purchases)

425

Car loan (personal use)

600

Student loan interest

1,750

Taxes paid

State income tax withheld

2,950

State income tax due with last years tax return

350

Real estate property taxesprincipal residence

1,700

Personal property taxescar

75

Medical expenses

Doctors fees

500

Prescription drugs

200

Health club fee

400

Charitable contributions (all required documentation is maintained)

Church, cash

3,100

United Way, cash

100

Red Cross, cash

200

Pine Cove Goodwillused clothing and household items, donated on 11/15/16

Thrift shop value at date of donation

450

Purchase price of the items

1,300

(You can skip Form 8283.)

Other

Investment publications

150

Tax return preparation fee

275

Business dues and subscriptions

350

Safe deposit box

75