Question

Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Rebecca is a homemaker and Walt is a high school teacher. Rebecca’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Walt’s earnings from teaching are:
Earnings from Las Vegas School Dist............ $50,000
Federal income tax withheld............... 5,000
State income tax withheld................ 0
The Bunges incurred the following expenses during their move from Maine to Nevada in January of 2014:
Cost of moving furniture................. $4,300
Travel (3,166 miles at $0.235) .............. 744
Lodging en route..................... 150
Meals en route.................... 90
House-hunting trip before the move............. 750
Walter’s previous job, as a high school teacher in Maine, was only 5 miles from his home. Rebecca was unemployed prior to the move. The Bunges own a ski condo in Utah. The condo was rented for 40 days during 2014 and used by the Bunges for 10 days. Pertinent information about the condo rental is as follows:
Rental income................ $6,000
Mortgage interest............. 4,800
Homeowners’ association dues........ 2,000
Utilities.................. 1,000
Maintenance................ 2,800
Depreciation (assume fully depreciated) .... 0
The above amounts do not reflect any allocation between rental and personal use of the condo. The Bunges are active managers of the condo.
Required:
Complete the Bunge’s federal tax return for 2014. Use Form 1040, Schedule E, and Form 3903 on Pages 4-45 through 4-48 to complete their tax return.


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  • CreatedJuly 16, 2015
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