Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street,

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Rebecca and Walter Bunge have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Rebecca is a homemaker and Walt is a high school teacher. Rebecca’s Social Security number is 222-43-7690 and Walt’s is 700-01-0002. Walt’s earnings from teaching are:

The Bunges incurred the following expenses during their move from Maine to Nevada in January of 2016:

The school district reimbursed Walter $500 for moving expenses. These are reflected on his W-2. Walter’s previous job, as a high school teacher in Maine, was only 5 miles from his home. Rebecca was unemployed prior to the move.

The Bunges own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2016 and used by the Bunges for 15 days. Pertinent information about the condo rental is as follows:

The above amounts do not reflect any allocation between rental and personal use of the condo. The Bunges are active managers of the condo.

Required: Complete the Bunge’s federal tax return for 2016. Use Form 1040, Schedule E, and Form 3903 on Pages 4-47 through 4-49, and Page 4-50, and Form 8582 (page one only) on Page 4-51 to complete their tax return.

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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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