During the current year, Ron and Anne sold the following assets: Capital Asset Market Value Tax Basis Holding Period
L stock $50,000 $41,000 > 1 year
M stock 28,000 39,000 > 1 year
N stock 30,000 22,000 < 1 year
O stock 26,000 33,000 < 1 year
Antiques 7,000 4,000 < 1 year
Rental home 350,000 90,000 > 1 year
$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).
For stocks, assume basis has been reported to IRS.
Ron and Anne have $35,000 qualified dividends.
In addition to the above transactions, Ron and Anne have salaries of $424,400 [$220,000 for Ron; $204,400 for Anne] and the correct amount of FICA and Medicare taxes have been withheld. They choose to use the standard deduction. Both are under age 65. Ron and Anne have one rental home (residential rental) for which they receive $20,000 in rental income and have the following rental expenses: Real estate taxes, $10,800, Mortgage interest, $11,000, property insurance $1,428, and depreciation $5,200. They actively participate in the management of this property.
Form 1040 (and Schedules 1, 2, and 3 if needed)
Schedule B
Schedule D
Schedule E
Form 4797
Form 8582
Form 8949
Form 8959
Form 8960
Any other required form
Complete Ron and Anne’s 2020 tax return.