Lisa Kohl (age 44) is a single taxpayer and she lives at 212 Quivira Road, Overland Park, KS 66210. Her Social Security number is 467-98-9784. Lisa’s earnings and income tax withholding as the principal of the local high school for 2015 are:

 

Lisa’s other income includes qualifying dividends on Johnson Corporation stock of $4,050 and interest on a certificate of deposit at Olathe National Bank of $250. In April 2015, Lisa paid $475 due on her 2014 Kansas state income tax.

During the year, Lisa paid the following amounts (all of which can be substantiated):

 

Lisa had one stock transaction in 2015. Lisa received the following Form 1099-B from her sale of Johnson Corporation stock. All stock sales must be reported both to taxpayers and to the IRS on Form 1099-B so the proceeds can be matched by the IRS to each tax return. Lisa purchased the stock on August 31, 2014, for $43,100 before the stock plummeted in the last months of 2014.

 

On January 28, 2015, Lisa sold raw land for $180,000 (basis to Lisa of $120,000).

The land was purchased 6 years ago. She received $45,000 as a down payment and the buyer’s 10-year note for $135,000. The note is payable at the rate of $13,500 per year plus 8 percent interest. On January 28, 2016, the first of the ten principal and interest payments is due.

Required: Complete Lisa’s federal tax return for 2015. Use Form 1040, Schedule A, Schedule B, Schedule D, Form 8949, the Qualified Dividends and Capital Gain Tax Worksheet, and Form 6252 on Pages 8-57 to 8-67 to complete this tax return. Make realistic assumptions about any missing data.

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Earnings Federal income tax withheld State income tax withheld S55,70O 7,800 700 Earnings Federal income tax withheld State income tax withheld S55,70O 7,800 700

Answer rating: 100% (QA)

Solution Individual taxation Tax law derives its authority from the constitution Tax law acts as an enabler to promote social and economic policies Tax levy is on the taxable income of the persons rec... View the full answer