Comprehensive Problem $4-1$

Theodore $E.$ Lariat $is$ a single taxpayer born $on$ September $22,1975.He$ was appointed the new coach $of$ the Nashville Country Stars soccer team $in$ January $2023.$ His address, Social Security number, and wages are reported $on$ his Form $W-2(see$ separate tab$).$

Theodore was previously the coach $at$ a different soccer club $in$ a different state. $He$ sold his previous home before moving $to$ Nashville $(see1099-S$ below$).$ His only selling expense was sales commissions $of$ $$27,790.$ His basis $in$ the home was $$400,000.$ Theodore purchased his previous home $on$ January $5,2022,$ and sold $iton$ January $6,2023.$ Obviously, $he$ would not have sold the home $ifit$ were not for the new job. $Heis$ currently renting the home $he$ lives $in.$

$$ CORRECTED $(if$ checked$)$

FILER'S name, street address, city $or$ town, state $or$ province, country, ZIP $or$ foreign postal code, and telephone number

Troy Title and Escrow, Inc.

$40700$ Woodward Ave #$150$

Bloomfield Hills, $MI483041$ Date $of$ closing

$\frac{01}{06}\frac{?}{2023}$ OMB $No.1545-0997$

Form $1099-S$

$(Rev.$ January $2022)$ Proceeds From Real Estate Transactions

$2$ Gross proceeds

$ $555,790\mathrm{.}00$ For calendar year

$2023$

FILER'S TIN TRANSFEROR'S TIN $3$ Address $(including$ city, state, and ZIP code$)or$ legal description

$8383$ Livernois $Rd,$ Troy, $MI48083$ Copy $B$

For Transferor

This $is$ important tax information and $is$ being furnished $to$ the IRS. $If$ you are required $to$ file a return, a negligence penalty $or$ other sanction may $be$ imposed $on$ you $if$ this item $is$ required $tobe$ reported and the IRS determines that $it$ has not been reported.

$45-1331787775-89-9532$

TRANSFEROR$S$ name

Theodore $E.$ Lariat

Street address $(including$ apt. $no.)$

$140$ Whitsett $Rd.$

City $or$ town, state $or$ province, country, and ZIP $or$ foreign postal code

Nashville, $TN37210$

$4$ Transferor received $or$ will receive property $or$ services $as$ part $of$ the consideration $(if$ checked$)......................$

$5If$ checked, transferor $is$ a foreign person $(nonresident$ alien, foreign partnership, foreign estate, $or$ foreign trust$)...........$

Account number $(see$ instructions$)6$

$ Buyer's part $of$ real estate tax

Form $1099-S(Rev.1-2022)(keep$ for your records$)www.$irs.$go\frac{v}{F}$orm$1099S$ Department $of$ the Treasury $-$ Internal Revenue Service

Theodore was welcomed back $to$ the Nashville area $ashe$ was formerly a star player $on$ the Country Stars team. During his playing time, $he$ had purchased a modest home $in$ Nashville but did not sell $it,$ instead choosing $to$ rent the home over the years. His rental home $is$ located $at2300$ Bransford Ave., Nashville, $TN37204$ and was rented all year $to$ his tenant. The tenant occupied the home $on$ January $1,2023,$ and pays rent $of$ $$1,500$ per month for each month $of2023(the$ lease $is$ a two$-$year lease$)$; however, Theodore required first and last months$$ rent and a security deposit $of$ $$500$ and all were paid $on$ January $1,2023.$ Theodore$s$ rental expenses for the year are:

Mortgage interest $$16,000$

Real estate taxes $10,000$

Insurance $3,000$

Depreciation $(fully$ depreciated$)0$

Repairs $1,000$

Lawn and other maintenance $3,000$

Now that Theodore $is$ back $in$ Nashville, $he$ actively manages the rental home. $He$ probably spends about ten hours per month $on$ the rental.

Theodore received $a1099-B$ from his broker $(see$ separate tab$).$

Required:

Complete Theodore$s$ federal tax return for $2023.$ Determine $if$ Form $8949$ and Schedule $D$ are required. $Ifso,$ use those forms and Form $1040,$ Schedule $E(page1$ only$),$ and Form $8582(page1$ only$)to$ complete this tax return. $Do$ not complete Form $4562$ for reporting depreciation.

Assume the taxpayer had health coverage for the entire year.

The taxpayer does not want $to$ contribute $to$ the presidential election campaign.

$Ifan$ amount box does not require $an$ entry $or$ the answer $is$ zero, enter $"0".$

$Do$ not round any percentages.

$If$ required, round your answers $to$ the nearest dollar.

$If$ required, enter a "loss" $as$ a negative number $on$ the tax form. $Do$ not enter deductions $as$ negative numbers.

Special instructions for Form $8582$: $If$ required, use the minus sign $to$ enter a "loss" $as$ a negative number $on$ the lines $1d,3$ and $11.$ However, per the instructions $on$ the tax return, enter all numbers $in$ Part $IIas$ positive amounts.