Dr. George E. Beeper is a single taxpayer born on September 22, 1968. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper’s Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2016 are:

Dr. Beeper owns a rental house located at 672 Lake Street, Spokane, WA 99212. The house rents for $1,000 per month and was rented for the entire year. The following are the related expenses for the rental house:

The house was purchased on July 5, 1981. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself.

During May 2016, Dr. Beeper received the following Form 1099-R:

Form 1099-R:

Dr. Beeper was divorced in 2011. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $2,000 per month. Dr. Beeper made all his monthly alimony payments in 2016.

Required: Complete Dr. Beeper’s federal tax return for 2016. Use Form 1040 and Schedule E on Pages 4-47 through 4-49 and Form 8582 (page one only) on Page 4-51 to complete this tax return. Do not complete Form 4562 for reporting depreciation. Make realistic assumptions about any missing data.

Form 1040: