The couple’s income consists of rental property, stock investments, and royalties from an invention. They sold their large house that they had purchased six years ago for $580,000 on October 18, 2017, for $1 million. They now live in a condo at 101 Magnolia Lane, Suite 15, Highland Park, FL 33853.

The rental property is an apartment complex (building cost $1.5 million and was purchased January 5, 2017) with 30 units that rent for $27,000 per month and are at 90% occupancy.

Rental income		$	291,600
Salaries			115,000
Payroll taxes			8,798
Real estate taxes			18,750
Interest			45,000
Repairs and maintenance			29,000
Depreciation	(Calculate - ignore land value)

The following information is also for the year:

1099-INT	Old Bank	$	22,000
1099-DIV	Dell, Inc. Ordinary dividends		15,250
	Qualified dividends		15,250
1099-DIV	IBM, Inc. Ordinary dividends		8,650
	Qualified dividends		8,650
1099-DIV	Pepsi, Inc. Ordinary dividends		18,785
	Qualified dividends		18,785
1099-MISC	Box 2 royalties		152,300

	Purchased	Sold	Sale Price			Basis			Gain/Loss
Dell (held 9 mo.)	12/01/16	09/01/17	$	15,000		$	9,000			$	6,000
Pepsi (held 4 mo.)	09/01/17	12/29/17		17,000			25,000				(8,000	)
IBM (held 30 mo.)	06/05/15	12/05/17		38,000			20,000				18,000

On January 3, 2018, Dave repurchased the exact number of shares he sold on December 29, 2017. The Stanleys paid $13,000 each quarter (four payments) in federal estimated income taxes.

Prepare Form 1040 for the Stanleys. Taxpayers had qualifying health care coverage at all times during the tax year. You will also need Schedule B, Schedule D, Schedule E, Form 4562, Form 8949 and Form 8960. 

Answer rating: 100% (QA)

Form 1040 Department of the TreasuryInternal Revenue Service 99 2017 US Individual Income Tax Return OMB No 15450074 IRS Use OnlyDo not write or staple in this space For the year Jan 1Dec 31 2017 or o... View the full answer