Sam Tyler, a single 45 year old taxpayer, social security number 111-44-1111, had W-2 gross wages of $117,000 in 2017 with $28,000 withheld. Sams employer provides health insurance for Sam. The health plan is not a Cadillac plan. Sam bought Rental Equipment on 04/01/2015. He paid $400,000 including all closing and delivery costs. (He has at risk basis.) In the current year, he collected rents on the rental equipment of $42000 and paid tangible taxes of $7,000, insurance $3700, maintenance $12000, repairs $1700, Note interest paid $11500. Sam does not itemize or have any dependents. The pass ive activity loss carryover from this rental activity to the current year is $78,700. The prior year total tax paid was $19769. and prior year AGI was $85000. On June 1,of the current year, Sam sold the rental equipment for $485,000. Sam paid the closing costs and commissions of $24,500. Assume the buyer is not a related party and that Sam does not participate in this equipment rental activity.

1. Prepare a depreciation schedule for the rental equipment through the current year (2017) assuming 50% bonus depreciation was available in 2015. ( see page 10-7 bottom of page in text) Assume equipment has a 5 year life. This schedule may be an Excel spreadsheet and usually includes asset costs, date acquired, depreciation expense allowed each year and accumulated deprecation to date. You must use the MACRS tables containing percentages to use in your Excel spreadsheet for calculating the depreciation. It would also tie to the fixed asset section of a balance sheet if one existed. HINT: Accumulated Depreciation at 12/31/16 is $304,000 and the asset was sold mid-year, in the current year.

2. Prepare Schedule C and 4562 for the taxpayers current year passive personal property rental activity. Do not proceed to item 3 until you know these first two steps are correct or you will waste a lot of time and effort.

3.Prepare forms 4797, and schedule D for the sale of the property. Prepare these forms in the order mentioned here. You will use part III of form 4797. Read the instructions for 4797. Turn in One PDF of all the forms mentioned above as well as 1040, 8960, Qualified Dividend and Capital Gain worksheet and form 2210