Use the following information to complete Richard Elias 2017 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. Any forms, schedules, and instructions can be found at the IRS Web Site (www.irs.gov). The instructions can be helpful in completing the forms. AMT does not apply.

Facts: 1.

Richard Elias (unmarried) is employed as a law partner at the main office of Adams, Hancock & Franklin Law firm. Richard lives in a home he purchased 25 years ago. Richard lived in his home with his two brothers, Donald Elias and Gary Elias for the entire year. Gary is disabled and received $4,020 of income this year housesitting for neighbors. Gary is able to save all of these funds because Richard provides all of Garys support. Richard also provides all of the support for his brother Donald. Donald is a painter and sold $3,620 of his work in 2017.

Richard provided the following additional information:

The Elias live at 1920 Girard Road, El Paso, TX 79933.

Richards birthday is 5/18/1951 and his Social Security number is 552-65-0078.

Garys birthday is 11/29/1948 and his Social Security number is 563-06-2929.

Donalds birthday is 1/7/1953 and his Social Security number is 513-56-1062

Richard does not have any foreign bank accounts or trusts.

Richard, Gary and Donald have health insurance.

Richard received a Form W-2 from Adams, Hancock & Franklin Law Firm (his employer) that contained the following information:

Wages: $149,000 Federal income tax withheld: 18,320

Social Security tax withheld: 7,886

Medicare tax withheld: 2,166

State income tax withheld: 0

Richard received $650 municipal bond interest from City of El Paso Bonds, $1,200 in interest from Western States Bank and $320 in interest from Morgan Stanley. He also received a $7,200 dividend from Butler Corp. and an $285 dividend from Town House Inc. Both dividends were qualified dividends.

Richard sold some of his stock portfolio to pay for art classes for Donald. He sold 3,200 shares of SpaceCo stock for $60 a share on June 16, 2017. He purchased the stock on June 12, 2002, for $45 a share. There was a commission charge of $175 on the sale of these shares. He also sold 5,500 shares of GameCo stock for $17 a share on February 5, 2017. He purchased the stock for $32 a share on December 2, 2016. Both of these sales were not reported to her on a 1099-B.

Richards uncle, Jessie died on June 30, 2015, leaving Richard his entire estate. Included in the estate was Jessies house (659 Stanton Street, El Paso, TX 79901). Jessies basis in the residence was $106,000. The fair market value of the residence on the date of his death in 2015 was $289,000. Richard has used the property as a rental property since he received it and has managed it himself, however he is not a real estate professional. To compute the depreciation on the house, Richard has allocated $22,000 of the propertys basis to the land and the remaining amount to the house. He has depreciated the house using the MACRS rules and conventions applicable to residential real estate. Richard collected $24,000 rent in 2017. The house was occupied during the entire year. He did not pay any contract labor that would require form 1099 for work related to this rental house. He incurred the following expenses related to the rental house during the year:

Property Insurance$2,850

Property Taxes $3,100

Maintenance $4,650

Depreciation ..To be computed

The following is a record of the medical expense that Richard paid during the year. The amounts reported are amounts she paid in excess of insurance reimbursements.

Medical Insurance premiums $16,200

Prescription medications 5,200

Prescription medications for Donald 600

Over-the-counter medications 1,250

Doctor and dentists visits 1,875

Eyeglasses 850

Richard paid $18,300 in mortgage interest during the year to EPIC credit union. The loan balance on his loan is $599,000. During the year, Richard also paid $4,962 in real estate property taxes on his home, $3,960 real estate property taxes on a cabin he owns in Cloudcroft, NM, and $1,678 on real estate property taxes on land in El Paso County.

Richard contributed cash of $8,700 to the Community Church during the year. Community Churchs address is 333 Narrow Way, El Paso, TX 79905.

Richard paid $5,989 in Texas sales tax this year. He has kept all his receipts.

Richard paid $9,000 to Active Adult Daycare for Garys care while he was working. Active Adult DayCare employer id# is 85-8765433. They are located at 3697 Durazno Ave, El Paso, TX 79901