Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2014, Kent’s W-2 as the controller of a local corporation showed the following:

Earnings from the Gentry Corporation……………………………    $150,000

Federal income tax withheld………………………………………  25,000

State income tax withheld…………………………………………   14,000

Kent’s other income includes interest from GMAC bonds of $3,250 and interest on CDs at The Cove Bank of $4,145. Also, Kent received tax-exempt interest of $37,960 on private activity bonds that is subject to alternative minimum tax.

During the year, Kent paid the following amounts (all of which can be substantiated): 

Home mortgage interest……………………………………………..            $42,210

Home equity debt interest on loan used to purchase a Lexus………             6,800

Credit card interest………………………………………………….             2,280

California annual auto registration tax (deductible portion)………..              770

Auto insurance………………………………………………………             1,170

State income taxes paid in 2014 (for 2013)…………………………             16,302

Property taxes on personal residence………………………………...            8,060

Blue Cross premiums………………………………………………….          2,340

Other medical expenses……………………………………………….          1,025

CPA fees paid to handle 2010 IRS audit……………………………..          9,100

Charitable contributions:

Tree-huggers Historical Society (a qualified charity)…………………          1,040

Campanile Educational (a qualified charity)…………………………..        12,000

Tecaté Orphanage (a Mexican organization)…………………………..          500 

Required:

Complete Kent’s federal tax return for 2014. Use Form 1040, Schedule A, Schedule B, and Form 6251, on Pages 6-59 through 6-64. Make realistic assumptions about any missing data.