Wendy ONeil (SSN 412-34-5670), who is single, worked full time as the director at a local charity. She resides at 1501 Front Street, Highland, AZ 85711. For the year, she had the following reported on her W-2:

Wages	$	46,200
Federal withholding		7,930
Social security wages		46,200
Social security withholding		2,864
Medicare withholding		670
State withholding		2,310

Other information follows:

1099-INT New Bank	$	300
1099-DIV Freeze, Inc. Ordinary dividends		400
Qualified dividends		400

Wendy had the following itemized deductions:

State income tax withholding	$	2,310
State income tax paid with the 2018 return		100
Real estate tax		2,600
Mortgage interest		8,060

Wendy inherited a beach house in North Carolina (rental only) on January 2, 2019, from her father. The FMV at the fathers death was $850,000. He had purchased the house 20 years earlier for $100,000.

Summer rental income		$	45,000
Repairs			2,500
Real estate taxes			6,500
Utilities			2,400
Depreciation	(Calculate)

On December 29, 2019, Wendy properly conducted a like-kind exchange for rental real estate located at 128 Lake Blvd., Hot Town, AZ. She received rental property with an FMV of $950,000 and $20,000 cash in exchange for the North Carolina beach house. The Arizona property did not produce any income until 2019.

Prepare Form 1040 for Wendy for 2019. The taxpayer had qualifying health care coverage at all times during the tax year. You will also need Schedule 1, Schedule A, Schedule E, Form 4562, Form 4797, and Form 8824.

Use the appropriate Table 6A-6 and Tax Tables or Tax Rate Schedules. (Input all the values as positive numbers. Round intermediate computations and final answers to the nearest whole dollar. Instructions can be found on certain cells within the forms. Do not skip rows while entering in Residential rental property section on Section B of Form 4562.)