Steve Drake is divorced. His 8 year old son, Mike, lives with him 9 months of the year in a rented condo at 123 Anywhere Lane, Logan, Utah. Mike lives with his mother, Steves ex-wife, during the summer months. His mother provides more than half of Mikes support and Steve agreed she can claim Mike as her dependent. Steve has a $42,000 salary and itemized deductions of $4,000. Taxes withheld for the year were $3,221.

Steve received a K-1 from a partnership in which he had invested indicating that his share of the partnership STCL is $2000

On July 14 of the current year (2018), Steve sold the following assets:

Land was sold for $35,000. The land was received as a property settlement on January 10, 2009, when the lands FMV amounted to $30,000. His ex-wifes basis for the land, purchased on January 10, 1999, was $18,600

A personal use computer acquired on March 2 last year for $4,000 was sold for $2,480

A membership card for a prestigious country club was sold for $8,500. The card was acquired on October 10, 2001, for $6,000

Marketable securities held as an investment were sold for $20,000. The securities were inherited from his uncle, who died on March 10 of the current year when FMV of the securities was $21,000. The uncle purchased the securities on May 10, 1998 for $10,700.

In addition to the above sales, Steve received a $100 refund of state income taxes paid last year. Steve used the standard deduction last year to computer his tax liability. Prepare Form 1040 and Schedule D for the current year.