Question
T (SSN 123-45-6789) is 32 and unmarried but does provide all of the support for Z (age 22) who is Ts younger brother and lived
T (SSN 123-45-6789) is 32 and unmarried but does provide all of the support for Z (age 22) who is Ts younger brother and lived with T for the entire year. In 2017, Z was a full-time student at a local community college but did earn $5,000 from a part-time job during the summer.
T had the following property dispositions during 2017:
sold for $75,000 on 8/12 a rental property that was purchased on 6/25/09 for $75,000; $11,000 of depreciation has been taken on the property.
sold the following equity securities:
Description | Trade Date: Acquisition | Trade Date: Disposition | Adjusted Basis | Amount Realized |
D Corp. | 4/13/12 | 4/13 | $16,000 | $50,000 |
M, Inc. | 6/11/16 | 7/15 | $12,000 | $10,000 |
H Company | 4/13/17 | 8/13 | $19,000 | $14,000 |
Z, Inc. | 7/13/15 | 7/13 | $6,500 | $17,000 |
A Associates | 5/12/14 | 6/2 | $3,500 | $500 |
T has a LTCL and STCL carryover from 2016 of $4,500 and $3,000, respectively.
T sold a coin collection on 11/22 that was given to her as a Christmas gift in 2013 for $7,000. T doesnt know how much the donor paid for the individual items over the term of their collection.
T bought an old-masters painting on 2/13/17 for $2,500. She subsequently sold the painting for $4,500 on 12/29/17.
T was notified by an old college friend that she should not expect to receive payment, due to unexpected health issues, of a $3,000 loan (a written IOU was executed) that was made in 2011. T did have an attorney send a demand for payment note and also made a referral to a collection agency, neither of which was successful in securing a payment. T has decided to discontinue any further collection efforts since payment will not be forthcoming.
BLAH common stock that was purchased 10/2/16 for $1,500 was delisted on 7/29/17 when all trading activity was suspended due to the beginning of a chapter 7 Bankruptcy.
H Company is 1244 stock; D Corp. is a qualified small business for purposes of 1202.
T did not receive any 1099-Bs.
T received the following information returns:
1095-B indicating minimum essential coverage for all 12 months for T and Z
1099-INT box 1 filled in for total interest income earned from Ts bond portfolio
W-2 with box 2 amount of $45,000; all other boxes are properly completed based on Ts salary amount
Required:
Prepare all relevant parts of Ts form 1040 (including all supporting schedules/forms) for 2017 assuming Ts taxable income prior to consideration of the property dispositions indicated above was $214,300 ($4,350 of qualified dividends, salary of 100,000 from employment as a part-time tax consultant with the remainder from taxable interest earned from a high yield domestic corporate bond portfolio).
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