Dave (SSN 412-34-5670) and Alicia (SSN 412-34-5671) Stanley are married and file their return jointly. They have retired at the age of 51. The couple's income consists of rental property, stock investments, and royalties from an invention. They sold their large house that they had purchased six years ago for $580,000 on October 18, 2020, for $1 million. They now live in a condo at 101 Magnolia Lane, Suite 15, Highland Park, FL 33853. The rental property is an apartment complex (building cost $1.5 million and was purchased January 5, 2020) with 30 units that rent for $27,000 per month and are at 90% occupancy. Rental income Salaries Payroll taxes Real estate taxes Interest Repairs and maintenance Depreciation $ 291,600 115,000 8,798 18,750 45,000 29,000 (Calculate) The following information is also for the year: Old Bank 1099-INT $ 22,000 1099-DIV 1099-DIV Dell, Incorporated Ordinary dividends Qualified dividends IBM, Incorporated Ordinary dividends 15,250 15,250 8,650 1099-DIV Qualified dividends Pepsi, Incorporated Ordinary dividends 8,650 18,785. Qualified dividends. 18,785 1099-MISC Box 2 royalties Purchased Dell (held 9 month) 12/01/19 Pepsi (held 4 month) 09/01/20 IBM (held 30 month) 06/05/18 Sold 09/01/20 12/29/20 12/05/20 Sale Price $ 15,000 17,000 38,000 152,300 Basis $ 9,000 25,000 20,000 Gain/Loss $ 6,000 (8,000) 18,000 On January 3, 2021, Dave repurchased the exact number of shares he sold on December 29, 2020. The Stanleys paid $12,000 each quarter (four payments) in federal estimated income taxes.
Dave (SSN 412-34-5670) and Alicia (SSN 412-34-5671) Stanley are married and file their return jointly. They have retired at the age of 51. The couple's income consists of rental property, stock investments, and royalties from an invention. They sold their large house that they had purchased six years ago for $580,000 on October 18, 2020, for $1 million. They now live in a condo at 101 Magnolia Lane, Suite 15, Highland Park, FL 33853. The rental property is an apartment complex (building cost $1.5 million and was purchased January 5, 2020) with 30 units that rent for $27,000 per month and are at 90% occupancy. Rental income Salaries Payroll taxes Real estate taxes Interest Repairs and maintenance Depreciation $ 291,600 115,000 8,798 18,750 45,000 29,000 (Calculate) The following information is also for the year: Old Bank 1099-INT $ 22,000 1099-DIV 1099-DIV Dell, Incorporated Ordinary dividends Qualified dividends IBM, Incorporated Ordinary dividends 15,250 15,250 8,650 1099-DIV Qualified dividends Pepsi, Incorporated Ordinary dividends 8,650 18,785. Qualified dividends. 18,785 1099-MISC Box 2 royalties Purchased Dell (held 9 month) 12/01/19 Pepsi (held 4 month) 09/01/20 IBM (held 30 month) 06/05/18 Sold 09/01/20 12/29/20 12/05/20 Sale Price $ 15,000 17,000 38,000 152,300 Basis $ 9,000 25,000 20,000 Gain/Loss $ 6,000 (8,000) 18,000 On January 3, 2021, Dave repurchased the exact number of shares he sold on December 29, 2020. The Stanleys paid $12,000 each quarter (four payments) in federal estimated income taxes.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 59CP
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Transcribed Image Text:Dave (SSN 412-34-5670) and Alicia (SSN 412-34-5671) Stanley are married and file their return jointly. They have retired at the age of 51.
The couple's income consists of rental property, stock investments, and royalties from an invention. They sold their large house that
they had purchased six years ago for $580,000 on October 18, 2020, for $1 million. They now live in a condo at 101 Magnolia Lane,
Suite 15, Highland Park, FL 33853.
The rental property is an apartment complex (building cost $1.5 million and was purchased January 5, 2020) with 30 units that rent for
$27,000 per month and are at 90% occupancy.
Rental income
Salaries
Payroll taxes
Real estate taxes
Interest
Repairs and maintenance
Depreciation
$ 291,600
115,000
8,798
18,750
45,000
29,000
(Calculate)
The following information is also for the year:
Old Bank
1099-INT
$ 22,000
1099-DIV
1099-DIV
Dell, Incorporated Ordinary dividends
Qualified dividends
IBM, Incorporated Ordinary dividends
15,250
15,250
8,650
1099-DIV
Qualified dividends
Pepsi, Incorporated Ordinary dividends
8,650
18,785.
Qualified dividends.
18,785
1099-MISC Box 2 royalties
Purchased
Dell (held 9 month)
12/01/19
Pepsi (held 4 month)
09/01/20
IBM (held 30 month)
06/05/18
Sold
09/01/20
12/29/20
12/05/20
Sale Price
$ 15,000
17,000
38,000
152,300
Basis
$ 9,000
25,000
20,000
Gain/Loss
$ 6,000
(8,000)
18,000
On January 3, 2021, Dave repurchased the exact number of shares he sold on December 29, 2020. The Stanleys paid $12,000 each
quarter (four payments) in federal estimated income taxes.
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