Professor Patricia (Patty) Pt is retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a

Professor Patricia (Patty) Pâté is retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 68 years old. Patty lives at 98 Colander Street, Henderson, NV 89052. Professor Pâté’s Social Security number is 565-66-9378. Patty receives monthly retirement benefits from her PSCAA retirement plan. Earnings and income tax withholding shown on her retirement 2016 Form 1099-R are:

Patricia owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rents for $850 per month and was rented for the entire year. The following are the related expenses for the rental house:

The condo was purchased on August 31, 1978. Professor Pâté handles all rental activities (e.g., rent collection, finding tenants, etc.) herself.

During March 2016, Patricia took a $82,000 distribution from her 401(k) plan. Patricia received only $65,600 because the 401(k) plan administrators withheld $16,400 federal income tax from the distribution. Forty-five days after the distribution, Patricia deposited $58,000 in a rollover IRA, keeping $7,600 of the $65,600 received in order to remodel her kitchen.

Required: Complete Professor Pâté’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.