Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form $1040.$ Some of the data information will be reproduced in the other parts for convenience.

Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form. If required, round your answers to the nearest dollar. If an amount box does not require an entry or the answer is zero, enter $"0".$

Information regarding Noah and Joan's rental property is reproduced here.

Noah and Joan own a condo and use it as a rental property. The condo is located at $16$ Oakwood Ave, Unit A$,$ Dayton, OH $45409.$ Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed. On average, Noah spends about two hours per week on the rental activity. The revenue and expenses for the year are as follows:

Rental income received $$16,200$

Insurance $800$

Interest expense $2,800$

Property taxes $1,500$

Miscellaneous expenses $500$

Rental income includes $$1,150$ per month for two months under the previous lease $($which ended February $28,2023).$ The new lease is $$1,300$ per month for ten months under the new lease but the tenant paid only $$900$ in May $2023$ because the tenant paid $$400$ for repairs to the apartment, and with the Arc$$s permission, reduced May$$s rent by $$400.$ The new lease also required the tenant to pay last month$$s $$1,300$ rent in February $2023.$ The home was acquired for $$95,000$ in $2007.$ On May $12,2023,$ the Arcs installed new fixtures $(7-$year recovery period$)$ at a cost of $$5,500.$ They wish to maximize the cost recovery on the new fixtures but make no elections.

Question Content Area

ROUNDUP DAY CARE CENTER

$245$ N$.$ WILKINSON STREET

DAYTON, OH $45402$

January $12,2024$

Joan and Noah Arc

$1265$ W$.$ Riverview Avenue

Dayton, OH $45402$

Dear Joan and Noah,

Thank you for a great $2023$ at Roundup! We appreciate your patronage during the year and hope to continue to provide excellent service for Nora in $2024.$ We have provided the tax information for calendar year $2023$ below. Please let us know if you need any additional information.

Sincerely,

Charles F$.$ Burgundian

Executive Director, Roundup Day Care

EIN $54-0983456$

Date of service Amount Paid Child

January $1,2023$ December $31,2023$ $$7,300\mathrm{.}00$ Nora Arc

Question Content Area

Complete Schedule E$.$

SCHEDULE E

$($Form $1040)$

Department of the Treasury Internal Revenue Service Supplemental Income and Loss

$($From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.$)$

Attach to Form $1040,1040-$SR$,1040-$NR$,$ or $1041.$

Go to www$.$irs.gov$/$ScheduleE for instructions and the latest information. OMB No$.1545-0074$

$2023$

Attachment

Sequence No$.13$

Name$($s$)$ shown on return

Noah and Joan Arc Your social security number

$434-11-3311$

Part I Income or Loss From Rental Real Estate and Royalties

Note: If you are in the business of renting personal property, use Schedule C$.$ See instructions. If you are an individual, report farm rental income or loss from Form $4835$ on page $2,$ line $40.$

A Did you make any payments in $2023$ that would require you to file Form$($s$)1099?$ see instructions $$ Yes $$ No

B If "Yes," did you or will you file required Form$($s$)1099?$ Yes $$ No

$1$a Physical address of each property $($street$,$ city, state, ZIP code$)$

A $16$ Oakwood Ave., Unit A$,$ Dayton, OH $45409$

B

C

$1$b Type of Property $($from list below$)2$ For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions.

Fair Rental Days Personal Use Days QJV

$1$

$1$

A fill in the blank f$0$b$30$a$000$faeff$9\_2$

$365$

$$

B B $$

C C $$

Type of Property:

$1$ Single Family Residence $3$ Vacation$/$Short$-$Term Rental $5$ Land $7$ Self$-$Rental

$2$ Multi$-$Family Residence $4$ Commercial $6$ Royalties $8$ Other $($describe$)\_\_\_\_\_\_\_$

Income: Properties: A B C

$3$ Rents received $...............................3$ fill in the blank f$0$b$30$a$000$faeff$9\_3$

$4$ Royalties received $............................4$

Expenses:

$5$ Advertising $.................................5$

$6$ Auto and travel $($see instructions$).................6$

$7$ Cleaning and maintenance $......................7$

$8$ Commissions $................................8$

$9$ Insurance $..................................9$ fill in the blank f$0$b$30$a$000$faeff$9\_4$

$800$

$10$ Legal and other professional fees $..................10$

$11$ Manage