Comprehensive Problem $5-2$B

John Fuji $($birthdate June $6,1983)$ received Form W$-2$ from his employer related to his job as a manager at a Washington apple$-$processing plant $($see separate tab$).$

John has income reported to him on a $1099-$DIV from his investment in mutual funds $($see separate tab$).$

Also, in accordance with the January $2016$ divorce decree John receives $$500$ per month alimony from his ex$-$wife $($Dora Fuji, Social Security number $573-79-6075)$ in $2023.$

On December $30,2023,$ John sold his primary residence after living there since October $2013.$ John received the Form $1099-$S from the sale $($see separate tab$).$ John paid selling expenses of $$35,755.$ His basis in the home was $$292,000.$ John paid the property taxes on the home for the second half of $2023$ of $$6,000.$ The closing statement for the sale indicated that the buyer needed to reimburse John for property taxes of $$33\mathrm{.}33,$ which were reflected as an increase in John's gross proceeds.

The entire year$$s property taxes are reflected on John$$s $1098($see separate tab$).$

John tried his hand at day trading for one week in February $2023.$ He received a substitute Form $1099-$B from his broker. Because the IRS was provided the acquisition date and basis for all trades and none required any adjustments or codes, these can be entered as a summary entry into Schedule D and no Form $8949$ needs to be prepared.

During $2023,$ John paid the following amounts $($all of which can be substantiated$)$:

Auto loan interest$1,575$Credit card interest$655$State sales tax $($actual exceeds estimated$)2,022$Doctor bills$5,000$Other deductible medical expenses$1,800$Income tax preparation fee$500$Job$-$hunting expenses$925$Cash charitable donation to the Jonagold Research Center$2,500$Federal estimated tax payment $12/30/20235,000$

John$$s employer offers a retirement plan, but John does not participate. Instead, he made a $$6,500$ contribution to a Roth IRA.

John owns a condo in Seattle that he lived in years ago and now rents. His rental condo is located at $1012$ E Terrace Street Unit $1204,$ Seattle, WA $98122$ and was rented all year to his tenant. The tenant occupied the home on January $1,2023,$ and pays rent of $$2,000$ per month for each month of $2023($a $12-$month lease$).$ John demanded first and last month rent and a security deposit of $$500$ and all were paid January $1,2023.$ Upon the tenant$$s departure on December $31,$ John noted damages and is going to retain $$300$ of the security deposit. John$$s rental expenses for the year are:

Mortgage interest$$9,500$Real estate taxes$7,000$Insurance$2,000$Depreciation $($fully depreciated$)0$Repairs$1,000$Homeowner$$s association fees$5,600$

John actively manages the rental home. He probably spends about seven hours per month on the rental.

Required:

Complete John's federal tax return for $2023.$ Use Form $1040,$ Schedule $1,$ Schedule A$,$ Schedule B$,$ Schedule D$,$ Schedule E$,$ Form $8949,$ Form $8582,$ and the Qualified Dividends and Capital Gains Tax Worksheet as needed to complete this tax return.

Make realistic assumptions about any missing data.

John has health coverage for the entire year, required round any dollar amount to the neare and he does not want to make a contribution to the presidential election campaign.

Enter all amounts as positive numbers.

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

If required, round any dollar amount to the nearest dollar.