Complete a Form 1040 with the appropriate Schedules and Forms for 2022 for Tulsi Gates.

Minimum forms required (find at irs.gov):
Form 1040, Schedule 1, Schedule 3
Form 1040, Schedule B, Schedule D, Schedule E.
Form 4562, Form 4797, Form 8949 (Optional), Form 8995 (optional)

To the extent of depreciation allowed on the rental that was sold, the LTCG is 25% gain that is taxed at the lower of the ordinary rate or 25%.

The Schedule D worksheet is not filed and is very complex. Just calculate the tax on your own:Tax on ordinary income+ Tax on 15% capital gains (probably 15%)+ Tax on 25% capital gains at the lesser of 25% or the ordinary rate.

Accountancy 503 Fall 2023
Tax Return Assignment 2
Tulsi Gates, age-59, is single and has no dependents. Tulsi had the following relevant transactions for 2022:
Wages as Publix store manager
Federal income tax withheld
Interest income from local bank
Qualified dividends
Gain on sale of Clean Tech Biofuels stock (held from
11/10/2019 to 10/31/2022)
Federal income tax quarterly deposits (total)
Itemized deductions (make them up, if appropriate)
RENTAL OPERATIONS
Rental income
Interest expense
Property taxes
Maintenance
Insurance
Depreciation-Building (Line 17, Form 4562)
Depreciation-Appliances (Line 17, Form 4562)
$39,400
4,290
950
1,155
645
3,500
13,650
Single
Family
Home
$25,900
12,800
1,950
440
1,260
2,695
0
SALE OF RENTAL RESIDENCE
Sales price (November 27, 2022)
Land (line 2, Form 4797)
Building (line 19A, From 4797)
Cost (October 18, 2013)
Land
Building
Accumulated depreciation allowed (including 2022 depreciation)
SALE OF APPLIANCES WITH RESIDENCE
Sales price (line 19B, From 4797)
Cost (October 18, 2015)
Accumulated depreciation allowed
Duplex
$25,200
-05,366
560
1.465
1,365
0
$ 72,000
38,000
$ 38,500
40,000
7,600
$ 1,750
6,500
6,500
Complete a Form 1040 with the appropriate Schedules and Forms for 2022 for Tulsi Gates.
Minimum forms required (find at irs.gov):
Form 1040, Schedule 1, Schedule 3
Form 1040, Schedule B, Schedule D, Schedule E.
Form 4562, Form 4797, Form 8949 (Optional), Form 8995 (optional).
Hints:
Claim the QBI deduction for the rentals (i.e., the rentals qualify as a trade or business). Any depreciation
recapture and any Sec. 1231 loss is included in QBI; any Sec. 1231 gain, is not.
Missing Information:
Make-up any information not provided (SS#s, addresses, etc.).