Wendy O’Neil (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 98765. For the year, she had the following reported on her W-2:
| Wages | $46,200 |
| Federal withholding | $6,930 |
| 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
Qualified dividends |
400
400 |
Wendy has the following itemized deduction:
| State income tax withhold | $2,310 |
| State income tax paid with the 2012 return | $100 |
| Real estate tax | $2,600 |
| Mortgage interest | $8,060 |
Wendy inherited a beach house in North Carolina (rental only) on October 4, 2012, from her father. The FMV at the father’s 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 Nov. 12, 2013, Wendy properly conducted a like-kind exchange for rental real estate located at 128 lake Blvd., Hot Town, AZ. She received rental property with a 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 2014.
Prepare Form 1040 for Wendy for 2013. You will also need schedule A, B, C, D, E, Form 4562 and form 8824
