At the beginning of 2022, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 000-00-1111. She sold her house in California on August 10 for \($500,000.\) She paid a \($14,000\) sales commission. The house was acquired on March 23, 1995, for \($140,000\).

The cost of transporting her household goods and personal effects from California to Orlando amounted to \($2,350.\) To travel from California to Florida, she paid travel and lodging costs of \($370\) and \($100\) for meals.

On July 15, she purchased a house for \($270,000\) on 1225 Minnie Lane in Orlando. To purchase the house, she incurred a 20-year mortgage for \($170,000.\) To obtain the loan, she paid points of \($3,400.\) The \($3,600\) of property taxes for the house in Orlando were prorated with \($1,950\) being apportioned to the seller and \($1,650\) being apportioned to the buyer. In December of 2022, she paid \($3,600\) for property taxes.

Other information related to her return:

Donna had no transactions involving virtual currency and had no foreign bank accounts or trusts.

a. Determine the amount of recognized gain on the sale of the residence.

b. Prepare Form 1040, including Schedules A, B, and D, as well as Forms 3903 and 8960 if needed.

Data From Form 1040

Data From Form 8960

Salary from Farah Movie, Inc. Salary from Ocala Production, Inc. $30,000 70,000 Federal income taxes withheld by Farah Federal income taxes withheld by Ocala FICA taxes withheld by Farah 6,000 22,000 2,295 FICA taxes withheld by Ocala 5,355 Interest income from Sun National Bank 1,800 Dividend income (qualifying dividends) 10,000 Interest paid for mortgage: Home in California 6,780 Home in Orlando 3,800 Property taxes paid in California 4,100 Sales taxes paid in California and Florida 3,125 State income taxes paid in California 2,900