Please file the right forms or schedules

Dr. Ivan I. Incisor and his wife Irene are married and file a joint return for 2016

On May 15, 2016, Ivan and Irene sold their personal residence for $540,500 and purchased a new house for $725,000. There address was 587 Mockingbird Lane in Boulder, CO 99206. They moved to their present address. Assume that there were only $500 in expenses for the sale since they did not use a realtor. They had owned the old house for 23 years. (Purchased on 6/10/92). It had an adjusted basis of $35,000 (Purchase price). Assume that they had no capital improvements on the home sold and that they wish to exclude the maximum gain available. They received full payment for the sale. The house had been their personal residence for all the years they were married. They moved into the new house on May 18, 2016. They want to exclude the maximum gain allowable. In June they had energy efficient windows installed for $10,000. These windows were certified as energy efficient. They have not incurred any of these types of expenditures previously.

On September 1, Irene opened a retail store that specializes in sports car accessories. She materially participated in the business.

The name of the store is Plus Two Comes. (EIN 38-0903267)The store is located at 617 Main Street, Boulder, CO99206. The store uses the cash method of accounting. On December 12, Irene purchased the building (non-residential real estate) where her store is located. She paid $340,000 for the land and building. The building was valued at $240,000 for the land was valued at $100,000. Irenes store is the only business in the building.

In addition to the above items, Irene incurred travel expenses to attend a seminar on sports car accessories. She spent $300 on airfare, $400 on lodging, $100 on a rental car, and $150 on meals. Irene has proper receipts for these amounts.

Irene drove her 2004 Ford Explorer (placed into service on 6/01/2005) 1,634 miles for business, driven after September 1, 2016, related to Plus Two Cones. The Explorer was driven a total of 17,000 (business and personal for the year). Included in the 17,000 is 5,000 miles spent commuting to the store. Irene has the required substantiation for this business mileage. She uses the standard mileage method.