THIS IS NOT ASKING THE SAME QUESTION AS THE OTHERS ARE! PLEASE ANSWER FULLY.

THE DIFFERENCE IS BOLDED BELOW THE QUESTION.

Mason Phillips, age 45, and his wife, Alyssa, live at 230 Wood Lane, Salt Lake City, UT 84101. Masons Social Security number is 111-11-1111. Alyssas Social Security number is 123-45-6789. Mason and Alyssa are cash basis taxpayers and report the following items for 2021:

• Salary of $140,000.

• Collection of unpaid rent from a prior year of $6,000.

• Rental income of $60,000 (not including prior year unpaid rent; the rental property is managed by the Phillips).

• Rental expenses of $33,000.

• Uncollected rent (bad debts) of $4,000.

• Casualty loss on rental property of $10,000.

• Sale of 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago.

• Personal casualty loss (from one event) of $3,000; not in a Federally declared disaster area.

• Theft loss of $8,000 on a painting held for investment.

• Other itemized deductions of $21,000.

• Federal income tax withheld of $3,000.

Compute Mason and Alyssas 2021 Federal income tax payable (or refund due).

Complete a tax return for 2020 (even though the problem says 2021) to fulfill all the requirements in Tax Return Problem #48 on pages 34 and 35 of Chapter 7.

Submit the tax package with the following forms:

* 1040

* Sched 1

* Sched A

* Sched C

* Form 8995 (QBI Deduction)

Notes:

1) Include the activity related to the rental property on Schedule C. The rental income should go on line 1. The rental expenses will go on line 20. If the bad debt and casualty loss on the rental property are deductible, they should go in detail onto Part V of Schedule C and then up to line 27a.

2) If the Sec 1244 stock loss is deductible, it should go on Schedule 1, line 4.

3) If the personal casualty loss is deductible, it should go on Schedule A, line 15.

4) If the theft loss is deductible, it should also go on Schedule A, line 15.

5) Assume for this exercise that the "other itemized deductions" of $21,000 is all mortgage interest.

AGAIN THIS IS NOT THE SAME AS THE OTHER QUESTIONS REGARDING THIS PROBLEM! PLEASE READ FULLY!

THANK YOU