Prepare Form 1040 for Wendy for 2013. You will also need schedule A, B, C, D, E, Form 4562 and form 8824

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

 

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