Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2015. She lives at

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Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2015. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea’s Social Security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2016 for her job as a manager at a Florida shrimp-processing plant are:

Bea’s other income includes interest on a savings account at Beach National Bank of $2,175 and $620 per month alimony from her ex-husband.

During 2016, Bea paid the following amounts (all of which can be substantiated):

In July 2016, someone broke into Bea’s house and stole a diamond ring she had purchased in 2004. The diamond ring had a fair market value of $11,000 and a tax basis to Bea of $7,700. The ring was uninsured.

Required: Complete Bea’s federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, and Form 4684, from Pages 5-53 through 5-57 to complete this tax return. Make realistic assumptions about any missing data.

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Income Tax Fundamentals 2017

ISBN: 9781305872738

35th Edition

Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller

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