• Use the following information to complete Armando and Lourdes Gonzaless 2019 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps.

1. Armando Z. and Lourdes K. Gonzales are married and file a joint return. Armando is self-employed as a dentist, and Lourdes is a college professor. Armando and Lourdes have three children. The oldest is Ricardo, who lives at home. Ricardo is a law student at the University of Cincinnati and worked part time during the year, earning $1,500, which he spent for his own support. Armando and Lourdes provided $6,000 toward Ricardos support (including $4,000 for Ricardos fall tuition). They also provided over half the support of their daughter, Selena, who is a full-time student at Edgecliff College in Cincinnati. Selena worked part time as an independent contractor during the year, earning $3,200. Selena lived at home until she was married in December 2019. She filed a joint return with her husband, Tony, who earned $20,000 during the year. Felipe is the youngest and lived in the Gonzaless home for the entire year. The Gonzaleses provide you with the following additional information:
   • Armando and Lourdes would like to take advantage on their return of any educational expenses paid for their children.
   • The Gonzaleses do not want to contribute to the presidential election campaign.
   • The Gonzaleses live at 621 Franklin Avenue, Cincinnati, Ohio 45211.
   • Armandos birthday is 3/5/1967 and his Social Security number is 333-45-6666.
   • Lourdess birthday is 4/24/1969 and her Social Security number is 566-77-8888.
   • Ricardos birthday is 11/6/1996 and his Social Security number is 576-18-7928.
   • Selenas birthday is 2/1/2000 and her Social Security number is 575-92-4321.
   • Felipes birthday is 12/12/2007 and his Social Security number is 613-97-8465.
   • The Gonzaleses do not have any foreign bank accounts or trusts.
2. Lourdes is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,860 of Social Security tax, and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, Social Security tax of $620, and Medicare tax of $145.
3. The Gonzaleses received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. Page C-9They paid interest of $1,100 on the loan. Armando received a dividend of $540 on General Bicycle Corporation stock he owns. Lourdes received a dividend of $390 on Acme Clothing Corporation stock she owns. Armando and Lourdes received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 2019 are qualified dividends.
4. Armando practices under the name Armando Z. Gonzales, DDS. His business is located at 645 West Avenue, Cincinnati, Ohio 45211, and his employer identification number is 01-2222222. Armandos gross receipts during the year were $111,000. Armando uses the cash method of accounting for his business. Armandos business expenses are as follows:

Advertising	$ 1,200
Professional dues	490
Professional journals	360
Contributions to employee benefit plans	2,000
Malpractice insurance	3,200
Fine for overbilling State of Ohio for work performed on welfare patient	5,000
Insurance on office contents	720
Interest on money borrowed to refurbish office	600
Accounting services	2,100
Miscellaneous office expense	388
Office rent	12,000
Dental supplies	7,672
Utilities and telephone	3,360
Wages	30,000
Payroll taxes	2,400

5. In June, Armando decided to refurbish his office. This project was completed and the assets placed in service on July 1. Armandos expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Armando elected to compute his cost recovery allowance using MACRS. He did not elect to use 179 immediate expensing, and he chose to not claim any bonus depreciation.
6. Lourdess mother, Maria, died on July 2, 2014, leaving Lourdes her entire estate. Included in the estate was Marias residence (325 Oak Street, Cincinnati, Ohio 45211). Marias basis in the residence was $30,000. The fair market value of the residence on July 2, 2014, was $155,000. The property was distributed to Lourdes on January 1, 2015. The Gonzaleses have held the property as rental property and have managed it themselves. From 2015 until June 30, 2019, they rented the house to the same tenant. The tenant was transferred to a branch office in California and moved out at the end of June. Since they did not want to bother finding a new tenant, Armando and Lourdes sold the house on June 30, 2019. They received $140,000 for the house and land ($15,000 for the land and $125,000 for the house), less a 6 percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. To compute depreciation on the house, the Gonzaleses had allocated $15,000 of the propertys basis to the land on which the house is located. The Gonzaleses collected rent of $1,000 a month during the six months the house was occupied during the year. You may assume that the rental activity is considered an investment activity (not a trade or business). They incurred the following related expenses during this period:

   Property insurance	$500
   Property taxes	800
   Maintenance	465
   Depreciation (to be computed)	?

7. The Gonzaleses sold 200 shares of Capp Corporation stock on September 3, 2019, for $42 a share (minus a $50 commission). The Gonzaleses received the stock from Armandos father on June 25, 1993, as a wedding present. Armandos father originally purchased the stock for $10 per share on January 1, 1970. The stock was valued at $14.50 per share on the date of the gift. No gift tax was paid on the gift.
8. Armando and Lourdes have given you a file containing the following receipts for expenditures during the year:

   Prescription medicine and drugs (net of insurance reimbursement)	$ 376
   Doctor and hospital bills (net of insurance reimbursement)	2,468
   Penalty for underpayment of last years state income tax	15
   Real estate taxes on personal residence	4,762
   Interest on home mortgage (paid to Home State Savings & Loan)	8,250
   Interest on credit cards (consumer purchases)	595
   Cash contribution to St. Matthews church	9,080
   Payroll deductions for Lourdess contributions to the United Way	150

9. The Gonzaleses filed their 2018 federal, state, and local returns on April 12, 2019. They paid the following additional 2018 taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75.
10. The Gonzaleses made timely estimated federal income tax payments of $1,500 each quarter during 2019. 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, 2019. They would like to receive a refund for any overpayments.

SCHEDULED (Form 1040 or 1040-SR) OMB No. 1545-0074 Capital Gains and Losses Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Scheduled for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. 2019 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Attachment Sequence No. 12 Your social security number No Did you dispose of any investment(s) in a qualified opportunity fund during the year? Yes If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost for other basis) a) Adjustments to gain or loss from Form(s) 8949, Part I, line 2 column (g) (h) Gain or loss) Subtract column (e) from column (d) and combine the result with column (g) 5 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b 16 Totals for all transactions reported on Form(s) 8949 with Box A checked.. 2 Totals for all transactions reported on Form(s) 8949 with Box B checked 3 Totals for all transactions reported on Form(s) 8949 with Box C checked tormi 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 4 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 ..... 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the (g) th) Gain or loss) lines below. (d) (e) Adjustments Subtract column (e) Proceeds Cost to gain or loss from from column (d) and This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II combine the result whole dollars line 2, column] with column (g) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b. 8b Totals for all transactions reported on Form(s) 8949 with Box D checked 9 Totals for all transactions reported on Form(s) 8949 with Box E checked Keddensporter 10 Totals for all transactions reported on Form(s) 8949 with Box F checked. .. 11 Gain from Form 4797, Part 1; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 11 12 Net long-term gain or (oss) from partnerships, Scorporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions. 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 14 15 Net long-term capital gain or loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back. ..... 15 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040 or 1040-SR) 2019 Schedule D Form 1040 or 1040-SR) 2019 Page 2 Part III Summary 16 Combine lines 7 and 15 and enter the result 16 If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter-O-on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet 18 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet. 19 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, the smaller of: The loss on line 16; or ($3,000), or if married filing separately, ($1,500) 21 Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D (Form 1040 or 1040-SR) 2019 SCHEDULE E Supplemental Income and Loss OMB No. 1545-0074 (Form 1040 or 1040-SR) (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICS, etc.) Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Sequence No. 13 Name(s) shown on return Your social security number 2019 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 10997 (see instructions) Yes No B If "Yes," did you or will you file required Forms 1099? Yes No 1a Physical address of each property (street, city, state, ZIP code) A B B 1b Type of Property 2 For each rental real estate property listed Fair Rental Personal Use QJV (from list below) above, report the number of fair rental and Days Days personal use days. Check the QJV box A only if you meet the requirements to file as B a qualified joint venture. See instructions. B B Type of Property: 1 Single Family Residence 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental 2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income: Properties: B 3 Rents received 3 4 Royalties received 4 Expenses: 5 Advertising 5 6 Auto and travel (see instructions) 6 7 Cleaning and maintenance 7 8 Commissions. 8 . 9 Insurance 9 10 Legal and other professional fees 10 11 Management fees 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 12 13 Other interest. 13 14 14 14 Repairs. 14 15 Supplies 15 16 16 17 Utilities 17 18 Depreciation expense or depletion 18 19 Other (list) 19 20 Total expenses. Add lines 5 through 19 20 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (oss), see instructions to find out if you must file Form 6198 21 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) 22 VO 23a Total of all amounts reported on line 3 for all rental properties 23a b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties 23c d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported on line 20 for all properties 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040 or 1040-SR) 2019 Taxes Schedule E (Form 1040 or 1040-SR) 2019 Name(s) shown on retum. Do not enter name and social security number if shown on other side. Attachment Sequence No. 13 Page 2 Your social security number Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part II Income or Loss From Partnerships and S Corporations - Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198 (see instructions). 27 Are you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered "Yes," see instructions before completing this section ... Yes No (b) Enter P for 28 (d) Employer (c) Check (e) Check if Check it (a) Name partnership: S foreign Identification basis computation any amount is for S corporation partnership number is required not at risk A B D Passive Income and Loss Nonpassive Income and Loss (g) Passive loss allowed (h) Passive income () Nonpassive loss allowed Section 179 expense (k) Nonpassive income (attach Form 8582 if required) from Schedule K-1 (see Schedule K-1) deduction from Form 4562 from Schedule K-1 A B D 29a Totals b Totals 30 Add columns (h) and (k) of line 29a. 30 31 Add columns (g), (0), and () of line 29b. 31 32 Total partnership and S corporation income or (loss). Combine lines 30 and 31 32 Part III Income or Loss From Estates and Trusts 33 (a) Name a (b) Employer identification number B Passive Income and Loss Nonpassive Income and Loss (c) Passive deduction or loss allowed (d) Passive income (e) Deduction or loss (1) Other income from (attach Form 8582 if required) from Schedule K-1 from Schedule K-1 Schedule K-1 A B 34a Totals b Totals 35 Add columns (d) and (f) of line 34a 35 36 Add columns (c) and (e) of line 34b 36 37 Total estate and trust income or (loss). Combine lines 35 and 36. 37 Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs) Residual Holder (c) Excess inclusion from 38 (a) Name (b) Employer identification Schedules Q, line 2c (d) Taxable income (net loss) (e) Income from number (see instructions) from Schedules o, line 1b Schedules a, line 3b 40 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 Part V Summary Net farm rental income or (loss) from Form 4835. Also, complete line 42 below. . . . . . 40 41 Total income or loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040 or 1040-SR line 5, or Form 1040-NR, line 18 41 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120-S), box 17, code AC; and Schedule K-1 (Form 1041), box 14, code F (see instructions) 42 43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Form 1040, Form 1040-SR, or Form 1040-NR from all rental real estate activities in which you materially participated under the passive activity loss rules 43 Schedule E (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE SE (Form 1040 or 1040-SR) Self-Employment Tax 2019 Attachment Sequence No. 17 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Internal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR) Social security number of person with self-employment income Before you begin: To determine if you must file Schedule SE, see the instructions. May I Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2019? No Yes Yes Yes Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on eamings from these sources, but you owe self-employment tax on other earnings? Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $132,900? No No Are you using one of the optional methods to figure your net Yes earnings (see Instructions)? Did you receive tips subject to social security or Medicare tax Yes that you didn't report to your employer? No No No Yes Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? Did you receive church employee income (see instructions) Yes reported on Form W-2 of $108.28 or more? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 2 4 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065). box 20, code AH 1b 2 Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report 2 2 3 Combine lines 1a, 1b, and 2 3 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file this schedule unless you have an amount on line 1b... 4 Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. 5 Self-employment tax. If the amount on line 4 is: $132,900 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55. . More than $132,900, multiply line 4 by 2.9% (0.029). Then, add $16,479.60 to the result. Enter the total here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55 5 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 6 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11350Z Schedule SE (Form 1040 or 1040-SR) 2019 6 A 2 4a 4b 4c 5a 5b 6 Schedule SE Form 1040 or 1040-SR) 2019 Attachment Sequence No. 17 Page 2 Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR) Social security number of person with self-employment income Section B-Long Schedule SE Part 1 Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions. Also see instructions for the definition of church employee income. If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. Note: Skip lines 1a and 1b if you use the farm optional method (see instructions) 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b k 2 Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. Note: Skip this line if you use the nonfarm optional method (see instructions) 3 Combine lines 1a, 1b, and 2... 3 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here :::: c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -O- and continue 5a Enter Enter your church employee income from Form W-2. See instructions for definition of church employee income :: b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- Add lines 4c and 5b .....!!! Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2019.. 132.900 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement tier 1) compensation. If $132,900 or more, skip lines 8b through 10, and go to line 11 Unreported tips subject to social security tax (from Form 4137, line 10) c Wages subject to social security tax (from Form 8919, line 10) d Add lines 8a, Bb, and 8c si ..... ondo Subtract line 8d from line 7. If zero or less, enter-O- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124). 11 Multiply line 6 by 2.9% (0.029). 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55... 12 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 13 Part II Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income' wasn't more than $8,160, or (b) your net farm profits were less than $5,891. 14 Maximum income for optional methods 5,440 us.... 15 Enter the smaller of: two-thirds (/) of gross farm income' (not less than zero) or $5,440. Also include this amount on line 4b above Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits' were less than $5,891 and also less than 72.189% of your gross nonfarm income,' and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14. .. 17 Enter the smaller of: two-thirds (/) of gross nonfarm income not less than zero) or the amount on line 16. Also include this amount on line 4b above 6 7 7 8 b 8b 8c 8d 9 9 10 11 14 15 16 17 From Sch. F, line 9, and Sch. K-1 (Form 1065), box 14, code B. 2 From Sch. F. line 34, and Sch. K-1 (Form 1065), box 14, code A-minus the amount you would have entered on line 1b had you not used the optional method. From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. * From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. Schedule SE (Form 1040 or 1040-SR) 2019 SCHEDULED (Form 1040 or 1040-SR) OMB No. 1545-0074 Capital Gains and Losses Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Scheduled for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. 2019 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Attachment Sequence No. 12 Your social security number No Did you dispose of any investment(s) in a qualified opportunity fund during the year? Yes If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost for other basis) a) Adjustments to gain or loss from Form(s) 8949, Part I, line 2 column (g) (h) Gain or loss) Subtract column (e) from column (d) and combine the result with column (g) 5 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b 16 Totals for all transactions reported on Form(s) 8949 with Box A checked.. 2 Totals for all transactions reported on Form(s) 8949 with Box B checked 3 Totals for all transactions reported on Form(s) 8949 with Box C checked tormi 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 4 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 ..... 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions 6 7 Net short-term capital gain or loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back 7 Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the (g) th) Gain or loss) lines below. (d) (e) Adjustments Subtract column (e) Proceeds Cost to gain or loss from from column (d) and This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II combine the result whole dollars line 2, column] with column (g) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b. 8b Totals for all transactions reported on Form(s) 8949 with Box D checked 9 Totals for all transactions reported on Form(s) 8949 with Box E checked Keddensporter 10 Totals for all transactions reported on Form(s) 8949 with Box F checked. .. 11 Gain from Form 4797, Part 1; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 11 12 Net long-term gain or (oss) from partnerships, Scorporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions. 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions 14 15 Net long-term capital gain or loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back. ..... 15 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040 or 1040-SR) 2019 Schedule D Form 1040 or 1040-SR) 2019 Page 2 Part III Summary 16 Combine lines 7 and 15 and enter the result 16 If line 16 is a gain, enter the amount from line 16 on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter-O-on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet 18 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet. 19 20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040 or 1040-SR, line 6; or Form 1040-NR, line 14, the smaller of: The loss on line 16; or ($3,000), or if married filing separately, ($1,500) 21 Note: When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040 or 1040-SR, line 3a; or Form 1040-NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 12a (or in the instructions for Form 1040-NR, line 42). No. Complete the rest of Form 1040, 1040-SR, or 1040-NR. Schedule D (Form 1040 or 1040-SR) 2019 SCHEDULE E Supplemental Income and Loss OMB No. 1545-0074 (Form 1040 or 1040-SR) (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICS, etc.) Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041. Attachment Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Sequence No. 13 Name(s) shown on return Your social security number 2019 Part I Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2019 that would require you to file Form(s) 10997 (see instructions) Yes No B If "Yes," did you or will you file required Forms 1099? Yes No 1a Physical address of each property (street, city, state, ZIP code) A B B 1b Type of Property 2 For each rental real estate property listed Fair Rental Personal Use QJV (from list below) above, report the number of fair rental and Days Days personal use days. Check the QJV box A only if you meet the requirements to file as B a qualified joint venture. See instructions. B B Type of Property: 1 Single Family Residence 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental 2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income: Properties: B 3 Rents received 3 4 Royalties received 4 Expenses: 5 Advertising 5 6 Auto and travel (see instructions) 6 7 Cleaning and maintenance 7 8 Commissions. 8 . 9 Insurance 9 10 Legal and other professional fees 10 11 Management fees 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 12 13 Other interest. 13 14 14 14 Repairs. 14 15 Supplies 15 16 16 17 Utilities 17 18 Depreciation expense or depletion 18 19 Other (list) 19 20 Total expenses. Add lines 5 through 19 20 21 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (oss), see instructions to find out if you must file Form 6198 21 22 Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) 22 VO 23a Total of all amounts reported on line 3 for all rental properties 23a b Total of all amounts reported on line 4 for all royalty properties 23b c Total of all amounts reported on line 12 for all properties 23c d Total of all amounts reported on line 18 for all properties 23d e Total of all amounts reported on line 20 for all properties 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses 24 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here 25 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040 or 1040-SR), line 5, or Form 1040-NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 26 For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L Schedule E (Form 1040 or 1040-SR) 2019 Taxes Schedule E (Form 1040 or 1040-SR) 2019 Name(s) shown on retum. Do not enter name and social security number if shown on other side. Attachment Sequence No. 13 Page 2 Your social security number Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part II Income or Loss From Partnerships and S Corporations - Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198 (see instructions). 27 Are you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered "Yes," see instructions before completing this section ... Yes No (b) Enter P for 28 (d) Employer (c) Check (e) Check if Check it (a) Name partnership: S foreign Identification basis computation any amount is for S corporation partnership number is required not at risk A B D Passive Income and Loss Nonpassive Income and Loss (g) Passive loss allowed (h) Passive income () Nonpassive loss allowed Section 179 expense (k) Nonpassive income (attach Form 8582 if required) from Schedule K-1 (see Schedule K-1) deduction from Form 4562 from Schedule K-1 A B D 29a Totals b Totals 30 Add columns (h) and (k) of line 29a. 30 31 Add columns (g), (0), and () of line 29b. 31 32 Total partnership and S corporation income or (loss). Combine lines 30 and 31 32 Part III Income or Loss From Estates and Trusts 33 (a) Name a (b) Employer identification number B Passive Income and Loss Nonpassive Income and Loss (c) Passive deduction or loss allowed (d) Passive income (e) Deduction or loss (1) Other income from (attach Form 8582 if required) from Schedule K-1 from Schedule K-1 Schedule K-1 A B 34a Totals b Totals 35 Add columns (d) and (f) of line 34a 35 36 Add columns (c) and (e) of line 34b 36 37 Total estate and trust income or (loss). Combine lines 35 and 36. 37 Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs) Residual Holder (c) Excess inclusion from 38 (a) Name (b) Employer identification Schedules Q, line 2c (d) Taxable income (net loss) (e) Income from number (see instructions) from Schedules o, line 1b Schedules a, line 3b 40 39 Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below 39 Part V Summary Net farm rental income or (loss) from Form 4835. Also, complete line 42 below. . . . . . 40 41 Total income or loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040 or 1040-SR line 5, or Form 1040-NR, line 18 41 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120-S), box 17, code AC; and Schedule K-1 (Form 1041), box 14, code F (see instructions) 42 43 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Form 1040, Form 1040-SR, or Form 1040-NR from all rental real estate activities in which you materially participated under the passive activity loss rules 43 Schedule E (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE SE (Form 1040 or 1040-SR) Self-Employment Tax 2019 Attachment Sequence No. 17 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Internal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR) Social security number of person with self-employment income Before you begin: To determine if you must file Schedule SE, see the instructions. May I Use Short Schedule SE or Must I Use Long Schedule SE? Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. Did you receive wages or tips in 2019? No Yes Yes Yes Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on eamings from these sources, but you owe self-employment tax on other earnings? Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $132,900? No No Are you using one of the optional methods to figure your net Yes earnings (see Instructions)? Did you receive tips subject to social security or Medicare tax Yes that you didn't report to your employer? No No No Yes Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? Did you receive church employee income (see instructions) Yes reported on Form W-2 of $108.28 or more? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 2 4 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065). box 20, code AH 1b 2 Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report 2 2 3 Combine lines 1a, 1b, and 2 3 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file this schedule unless you have an amount on line 1b... 4 Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. 5 Self-employment tax. If the amount on line 4 is: $132,900 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55. . More than $132,900, multiply line 4 by 2.9% (0.029). Then, add $16,479.60 to the result. Enter the total here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55 5 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 6 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11350Z Schedule SE (Form 1040 or 1040-SR) 2019 6 A 2 4a 4b 4c 5a 5b 6 Schedule SE Form 1040 or 1040-SR) 2019 Attachment Sequence No. 17 Page 2 Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR) Social security number of person with self-employment income Section B-Long Schedule SE Part 1 Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions. Also see instructions for the definition of church employee income. If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. Note: Skip lines 1a and 1b if you use the farm optional method (see instructions) 1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b k 2 Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report. Note: Skip this line if you use the nonfarm optional method (see instructions) 3 Combine lines 1a, 1b, and 2... 3 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here :::: c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -O- and continue 5a Enter Enter your church employee income from Form W-2. See instructions for definition of church employee income :: b Multiply line 5a by 92.35% (0.9235). If less than $100, enter-O- Add lines 4c and 5b .....!!! Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2019.. 132.900 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement tier 1) compensation. If $132,900 or more, skip lines 8b through 10, and go to line 11 Unreported tips subject to social security tax (from Form 4137, line 10) c Wages subject to social security tax (from Form 8919, line 10) d Add lines 8a, Bb, and 8c si ..... ondo Subtract line 8d from line 7. If zero or less, enter-O- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124). 11 Multiply line 6 by 2.9% (0.029). 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55... 12 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 13 Part II Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income' wasn't more than $8,160, or (b) your net farm profits were less than $5,891. 14 Maximum income for optional methods 5,440 us.... 15 Enter the smaller of: two-thirds (/) of gross farm income' (not less than zero) or $5,440. Also include this amount on line 4b above Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits' were less than $5,891 and also less than 72.189% of your gross nonfarm income,' and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14. .. 17 Enter the smaller of: two-thirds (/) of gross nonfarm income not less than zero) or the amount on line 16. Also include this amount on line 4b above 6 7 7 8 b 8b 8c 8d 9 9 10 11 14 15 16 17 From Sch. F, line 9, and Sch. K-1 (Form 1065), box 14, code B. 2 From Sch. F. line 34, and Sch. K-1 (Form 1065), box 14, code A-minus the amount you would have entered on line 1b had you not used the optional method. From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. * From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. Schedule SE (Form 1040 or 1040-SR) 2019