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Warren and Young Kim are married taxpayers, filing jointly. They live at 777 Kingston Place, Anaheim, CA 92805. They are both retired. Their SSNs are

Warren and Young Kim are married taxpayers, filing jointly. They live at 777 Kingston Place, Anaheim, CA 92805. They are both retired. Their SSNs are Warren, 412-34-5670; and Young, 412-34-5671. Their birth dates are as follows: Warren, January 8, 1949; and Young, August 21, 1949. They own their home, which they paid off in 2010, and another home that they paid for in cash as an investment (Warren considers it his pension). Their investment home was rented for the entire year and is located just one block over at 9021 Jasmine Way. The following income and expense information relates to the rental activity. For the purpose of this return problem, do not consider passive activity rules or limitations. Rental income $ 27,600 Real estate taxes 7,952 Utilities 1,603 Mortgage interest -0- Repairs and maintenance 3,616 Depreciation See following information They placed the rental home into service on March 1, 2013, and of the $515,000 purchase price, $426,000 was allocated to the land. In addition to the rental, they received interest of $1,086 from American Credit Union and $2,200 from Bank of California. Social Security benefits were $13,910 for Warren and $8,822 for Young, respectively. Required: Prepare the Kims federal tax return for 2019. Use Form 1040, Schedule 1, Schedule B, Schedule E, and Form 4562. Assume they do not qualify for any credits (although they may). For any missing information, make reasonable assumptions. The net rental income qualifies for the 20 percent qualified business income deduction.

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