Problem:

Julie Hernandez is single and has no dependents. She operates a dairy farm, and her Social Security number is $000-00-1111.$ She lives at $1325$ Vermont Street in Costa, Florida, $44215.$ Consider the following information for the current year $(2021)$:

$$ Schedule C was prepared by her accountant and the net profit from the dairy operations is $$48,000.$

$$ Itemized deductions amount to $$4,185.$

$$ Dividend income $($qualified dividend$)$ amounts to $$280.$ She had no transactions involving virtual currency during the year.

$$ State income tax refund received during the year is $$125.$ She did not itemize last year.

$$ In June, a burglar broke into her house and stole the following two assets, which were acquired in $1989$:

The following assets used in her business were sold during the year:

Acquisition Original Depreciation Date of Sale Selling Price

Date Cost To Date of Sale

Tractor $6/10/2011$ $$25,000$ $$25,00010/20/2021$ $$8,300$

Barn $5/23/200190,00061,00005/13/202187,000$

Land $5/23/200115,000---0---05/13/202127,000$

Cows $9/7/201920,00013,00011/08/202121,000$

In August, three acres of the farm were taken by the state under the right of eminent domain for the purpose of building a highway. The basis of the three acres is $$1,500,$ and the state paid the FMV$,$ $$22,000,$ on February $10,2021.$ The farm was purchased on August $12,1988.$

Nonrecapture net Section $1231$ losses from the five most recent tax years preceding the current year amount to $$7,000.$ Estimated taxes paid during the year amount to $$32,000.$

Require:

Prepare Julie$$s $2021$ Forms $1040$ and schedule $1,4684$ Section A$,4797,$ and Schedule D$.$ Carefully fill in all applicable boxes. Worksheets submissions are optional. Do not consider the alternative minimum tax or self$-$employment taxes. Refer to instructions for $4684$ and $4797$; follow instructions for any need to be carried from $4684$ and$/$or $4797$ to Schedule D$.$

Hint:

$$ The taxpayer$$s age isn$$t given, which is typically under $65.$

$$ Do not enter any charitable contribution deduction on line $12$b of form $1040($this is the new credit for tax years $2021$ and $2022).$ In this problem, we are not given this information and we cannot verify the amount with taxpayer; therefore, we assume no charitable contributions.

Total points available $=50$

Submit all completed forms in pdf format $($preferable$).$ Make sure your name is on each form if possible.