Theodore E. Lariat is a single taxpayer born on September 22, 1974. He was appointed the new coach of the Nashville Country Stars soccer team in January 2022. His address, Social Security number and wages are reported on his Form W-2 (see separate tab). Theodore was previously the coach at a different soccer club in a different state. He sold his previous home for $528,000. His basis in the home was $400,000. Theodore purchased his previous home on January 5, 2021, and sold it on January 6, 2022. Obviously, he would not have sold the home if it were not for the new job. He is currently renting the home he lives in. Theodore was welcomed back to the Nashville area as he was formerly a star player on the Country Stars team. During his playing time he had purchased a modest home in Nashville but did not sell it, instead choosing to rent the home over the years. His rental home is located at 2300 Bransford Ave., Nashville, TN 37204 and was rented all year to his tenant. The tenant occupied the home on January 1, 2022, and pays rent of $1,500 per month for each month of 2022 (the lease is a two-year lease); however, Theodore required first and last months' rent and a security deposit of $500 and all were paid on January 1, 2022. Theodore's rental expenses for the year are: Mortgage interest Real estate taxes Insurance Depreciation (fully depreciated) Repairs Lawn and other maintenance $16,000 10,000 3,000 0 1,000 3,000 Now that Theodore is back in Nashville, he actively manages the rental home. He probably spends about ten hours per month on the rental. Theodore received a 1099-B from his broker (see separate tab). Required: Complete Theodore's federal tax return for 2022. Determine if Form 8949 and Schedule D are required. If so, use those forms and Form 1040, Form 1099-B Proceeds from Broker and Barter Exchange Transactions Box 3: Basis reported to IRS Box 2: Type of Gain or Loss: Short-term Box 6: Gross Proceeds Box 5: Not checked Quantity sold Box 1b Date acquired Box 1c Date sold or disposed Box 1 Security description (CUSIP) Jars Corp Hands Inc Box 6: Gross Proceeds Box 1 Security description (CUSIP) Box 1d Proceeds Box 1e Cost or other basis Box 1g Wash sale loss disallowed Gain/(Loss) amount 100 04/27/2022 12/15/2022 3,400 3,000 50 10/01/2021 04/28/2022 5,600 5,800 400 (200) Box 5: Not checked Quantity sold Box 1b Date Box 3: Basis reported to IRS Box 2: Type of Gain or Loss: Short-term Box 1c Date sold acquired or disposed Box 1d Proceeds Box 1e Cost or other basis Box 1g Wash sale loss disallowed Gain/(Loss) amount Mizer Corp 130 01/17/2011 08/21/2022 11,500 11,000 Moses Inc 50 03/25/2018 06/01/2022 1,000 5,200 Form 1099-INT Interest Income Box 1 Interest income Box 2 Early withdrawal penalty 138.29 500 (4,200) Box 3 interest on U.S Savings Bonds and Treasury obligations Part 11 Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short- term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. 1 (D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS (F) Long-term transactions not reported to you on Form 1099-B (a) Description of property (b) Date acquired (Example: 100 sh. XYZ (Mo., day, yr.) Co.) (c) Date sold or disposed of (Mo., day, yr.) (d) Proceeds (sales price) (see instructions) (e) Cost or other basis. See the Note below and see Column (e) in the separate instructions instructions. (f) Code(s) from instructions (g) Amount of Adjustment, if any, to gain or loss. If you enter an amount in column (g), (h) enter a code in column (f). Gain or (loss). See the separate Subtract column (e) from column (d) and combine the result with column (g) adjustment Primary residence 01/05/21 01/06/22 528,000 400,000 H x