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Skylar and Walter Black have been married for 25 years They live at 883 Scrub Brush Street Apt 52B Las Vegas NV 89125 Skylar is a homemaker and Walter is a high school teacher His W2 form is

Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2018, the Blacks provide over half of Alton's support.

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2018. They originally paid $76,000 for the home on July 3, 1993, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The school district reimbursed Walter $550 for moving expenses. These are reflected on his W-2 (see separate tab). Walter’s previous job, as a high school teacher in Maine, was only 5 miles from his home. Skylar was unemployed prior to the move.

The Blacks received a 1099-DIV from their mutual fund investments (see separate tab).

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 184 days during 2018 and used by the Blacks for 16 days. Pertinent information about the condo rental is as follows:

Rental income $12,000
Mortgage interest reported on Form 1098 8,600
Homeowners' association dues 5,200
Utilities 1,200
Maintenance 3,800
Depreciation (assume fully depreciated) 0

The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Required:
Complete Form 1040 and the schedules and forms provided for the Blacks.

  • Assume the taxpayers had health coverage for the entire year.
  • Neither taxpayers wants to contribute to the presidential election campaign.
  • If an amount box does not require an entry or the answer is zero, enter "0".
  • Do not round any percentages.
  • If required, round your answers to the nearest dollar.
  • If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.
  • Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.
 

Apr 28 2020 View more View Less

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