Dr. George E. Beeper is a single taxpayer born on September 22, 1972. He lives at 45

Question:

Dr. George E. Beeper is a single taxpayer born on September 22, 1972. 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 2020 are:

b Employer identification number (EIN) 36-1389676 e Employer's nama, address, and ZIP code Pine Medical Group

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:

Real estate taxes Mortgage interest Insurance Depreciation (assume fully depreciated) Repairs Maintenance

The house was purchased on July 5, 1985. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself. He spends about 10 hours per month on the rental.
In 2020, Dr. Beeper sold his primary residence as he wished to move to an apartment to avoid the maintenance and upkeep of a single-family home. Dr. Beeper’s home sold on February 12, 2020 for $345,000 net after commissions. He acquired the home on June 3, 2002 for $260,000 and had made improvements of $10,000.
Dr. Beeper was divorced on January 1, 2014. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $800 per month. Dr. Beeper made all his monthly alimony payments in 2020. Dr. Beeper did not receive an EIP in 2020.


Required: 

Complete Dr. Beeper’s federal tax return for 2020. Determine if Form 8949 and Schedule D are required. If so, use those forms and Form 1040, Schedule E (page 1 only), and Form 8582 (page 1 only) to complete this tax return. Do not complete Form 4562 for reporting depreciation.

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Related Book For  book-img-for-question

Income Tax Fundamentals 2021

ISBN: 9780357141366

39th Edition

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

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