The Gonzaleses made timely estimated federal income tax payments of $1,500 each quarter during the current tax year. They also made estimated state income tax payments of $300 each quarter and estimated city income tax payments of $160 each quarter. The Gonzaleses made all fourth-quarter payments on December 31. They would like to receive a refund for any overpayments.

Complete ALL required tax forms for filing the Gonzales couple's tax return for the current tax year 2016. You will use 2016 tax return forms.

Prepare a Schedule E and any other required forms for the current tax year (2016) addressing all tax positions taken for each item, citing relevant code and regulations to support each position. Please take the positions using tax law before the enacted Tax Cut and Job Act of 2017