Dr. George E. Beeper is a single taxpayer born on September 22, 1968. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical Group, and his earnings and income tax withholding for 2016 are:

a Employee's social security number 775-88-9531

OMB No. 1545-0008

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IRS e ~ file

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b

Employer identification number (EIN) 36-1389676

1

Wages, tips, other compensation 133,000.00

2

Federal income tax withheld 22,100.00

c

Employer's name, address, and ZIP code Pine Medical Group 800 W. 7th Ave. Spokane, WA 92204

3

Social security wages 133,000.00

4

Social security tax withheld 7,347.00

5

Medicare wages and tips 133,000.00

6

Medicare tax withheld 1,928.50

7

Social security tips

8

Allocated tips

d

Control number

9

10

Dependent care benefits

e

Employee's first name and initial Last name George Beeper 45 Mountain View Drive, Apt #321 Spokane, WA 92210

Suff.

11

Nonqualified plans

12a

See instructions for box 12

C o d e

DD

5,700.00

13

Statutory employee	Retirement plan	Third-party sick pay
?	?	?

12b

C o d e

14

Other

12c

C o d e

12d

C o d e

f

Employee's address and ZIP code

15State WA		Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name

Form W-2

Wage and Tax Statement

2016

Department of the TreasuryInternal Revenue Service

Copy BTo Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Dr. Beeper owns a rental house located at 672 Lake Street, Spokane, WA 99212. The house rents for $1,000 per month and was rented for the entire year. The following are the related expenses for the rental house:

Real estate taxes	$5,850
Mortgage interest	14,800
Insurance	2,100
Depreciation (assume fully depreciated)	0
Repairs	450
Maintenance	1,980

The house was purchased on July 5, 1981. Dr. Beeper handles all rental activities (e.g., rent collection, finding tenants, etc.) himself.

During May 2016, Dr. Beeper received the following Form 1099-R:

? CORRECTED (if checked)

PAYER'S name, street address, city or town, state or province, country, and ZIP or foreign postal code

Elm Medical Group Retirement Plan 260 E. Central Ave. Spokane, WA 92208

1	Gross distribution
$	67,000.00

OMB No. 1545-0119 2016 Form 1099-R

Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

2a	Taxable amount
$	0.00

2b

Taxable amount not determined

?

Total distribution ?

Copy B Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return. This information is being furnished to the Internal Revenue Service.

PAYER'S federal identification number

RECIPIENT'S identification number

3	Capital gain (included in box 2a)

4	Federal income tax withheld

44-4324567

775-88-9531

$

$

0.00

RECIPIENT'S name

George E. Beeper

Street address (including apt. no.)

45 Mountain View Drive

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

Spokane, WA 92210

5	Employee contributions/Designated Roth contributions or insurance premiums
$

6	Net unrealized appreciation in employer's securities
$

7

Distribution code(s) G

IRA/SEP/SIMPLE ?

8	Other
$

%

9a

Your percentage of total distribution

%

9b	Total employee contributions

$

10	Amount allocable to IRR within 5 years

11 1st year of desig. Roth contrib.

FATCA filing requirement

12State tax withheld $

13	State/Payer's state no.

14 State distribution $

$

?

$

$

Account number (see instructions)

15 Local tax withheld

16 Name of locality

17 Local distribution $

$

Form 1099-R

www.irs.gov/form1099r

Department of the Treasury - Internal Revenue Service

Dr. Beeper was divorced in 2011. The divorce decree requires Dr. Beeper to pay his ex-wife, Meredith Gray (Social Security number 333-45-1234), $2,000 per month. Dr. Beeper made all his monthly alimony payments in 2016.

Click here to access the tax table to use for this problem.

Required:

Complete Dr. Beeper's federal tax return for 2016. Use Form 1040, Schedule E, and Form 8582 to complete this tax return. Do not complete Form 4562 for reporting depreciation. Make realistic assumptions about any missing data.

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