the following information, prepare the Meyers 2018 joint federal income tax return. Blakes gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300. Valeries salary from GuiTech, an S Corporation, was $29,400. Valerie owns 16% of GuiTechs outstanding stock. Her pro rata share of GuiTechs ordinary business income was $13,790; her pro rata share of GuiTechs net loss from rental real estate was $8,100; and she received a $7,000 cash distribution from GuiTech. The ordinary income from GuiTech is qualified business income. Blake received a $15,000 cash gift from his grandmother. Valerie won $6,400 in the Maryland state lottery. The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain. Blake paid $12,000 alimony to a former spouse under a divorce agreement executed in 2011. The Meyers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence. The Meyers paid $7,000 state income tax and $4,200 state and local sales tax. Valerie contributed $1,945 to the First Baptist Church.

Valeries basis in her GuiTech S Corporation stock at the beginning of the year is $22,000. 2. Assume the rental real estate loss is fully deductible (ie, it is not limited by the passive activity loss limitation rules). 3. Taxpayers qualify for the Section 199A deduction on GuiTechs ordinary business income. 4. Assume there were no federal income taxes withheld from the taxpayers salaries, nor did either taxpayer make any federal Estimated Tax Payments during the year.

Complete Form 1040, Schedule 1, Schedule A and Schedule E forms.