Tax Form/Return Preparation Problem I12-56 1. At the beginning of the current year, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. 2. In June, she accepted a new job with Ocala Production in Orlando, Florida. 3. Donna is single 4. Social security number is XXXXX 5. She sold her house in California on August 10 for $500,000. 6. She paid a $14,000 sales commission. 7. The house was acquired on March 23, 1987, for $140,000. 8. The cost of transporting her household goods and personal effects from California to Orlando amounted to $2,350. form 3903 9. To travel from California to Florida, she paid travel and lodging costs of $370 and $100 for meals. form 3903 10. On July 15, she purchased a house for $270,000 on 11. 1225 Minnie Lane in Orlando. 12. To purchase the house, she incurred a 20-year mortgage for $170,000. 13. To obtain the loan, she paid points of $3,4

14.The $3,600 of property taxes for the house in Orlando was prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer.

15.In December of the current year she paid $3,600 for property taxes. - sch a line 6

16. Donna had qualifying medical insurance coverage for purposes of the Affordable Care Act.

17. Other information related to her return:

Salary from Farah Movie, Inc. $30,000 - line 7 1040

Salary from Ocala Production, Inc. 70,000 - line 7 1040

Federal income taxes withheld by Farah 6,000 - line 64 1040

Federal income taxes withheld by Ocala 22,000 - line 64 1040

FICA taxes withheld by Farah 2,295

FICA taxes withheld by Ocala 5,355

Dividend income 10,000 - part 2 sch a

Interest paid for mortgage:

Home in California 6,780 - sch a line 10

Home in Orlando 3,800 - sch a line 10

Property taxes paid in California 4,100 - sch a line 6

Sales taxes paid in California and Florida 3,125 - sch a line 8

State income taxes paid in California 2,900 - sch a line 5

Interest income from Sun National Bank 1,800

Prepare Form 1040 including Schedules A, B, and D and Form 3903, 8949, 8960, and 6251. Use the work sheet on page 12-23 to determine the amount of recognized gain on the sale of the residence.

The line numbers are what I put as to where I "think" they may go.