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Professor Patricia (Patty) Pt is retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 68 years old. Patty

Professor Patricia (Patty) Pt is retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 68 years old. Patty lives at 98 Colander Street, Henderson, NV 89052. Professor Pt's Social Security number is 565-66-9378. Patty receives monthly retirement benefits from her PSCAA retirement plan. Earnings and income tax withholding shown on her retirement 2017 Form 1099-R are:

Gross distribution and taxable amount $62,100
Federal tax withheld 7,350
State tax withheld 0

Patricia owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rents for $850 per month and was rented for the entire year. The following are the related expenses for the rental house:

Real estate taxes $3,835
Mortgage interest 8,613
Insurance 561
Depreciation (assume fully depreciated) 0
Homeowners'Association dues 1,260
Repairs 1,195
Gardening 560

The condo was purchased on August 31, 1979. Professor Pt handles all rental activities (e.g., rent collection, finding tenants, etc.) herself.

During March 2017, Patricia took an $82,000 distribution from her 401(k) plan. Patricia received only $65,600 because the 401(k) plan administrators withheld $16,400 federal income tax from the distribution. Forty-five days after the distribution, Patricia deposited $58,000 in a rollover IRA, keeping $7,600 of the $65,600 received in order to remodel her kitchen.

Required:

Complete Professor Pt's federal tax return for 2017. Use Form 1040, Schedule E, and Form 8582 to complete this tax return. Make realistic assumptions about any missing data.

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