Complete Question Text: At the beginning of 2014, Donna harp was employed as a c

Question

Complete Question Text:

At the beginning of 2014, Donna harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 000-00-1111. She sold her house in California on August 10 for $500,000. She paid a $14,000 sales commission. The house was acquired on March 23, 1987, for $140,000.
The cost of transporting her household goods and personal effects from California to Orlando amounted to $2,350. To travel from California to Florida, she paid travel and lodging costs of $370 and $100 for meals. On July 15, she purchased a house for $270,000 on 1225 Minnie Lane in Orlando. To purchase the house, she incurred a 20-year mortgage for $170,000. To obtain the loan, she paid points of $3,400. The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year she paid $3,600 for property taxes.
Salary from Farah Movie, Inc. $30,000
Salary from ocala Production, Inc. $70,000
Federal income taxes withheld by Farah $6,000
Federal income taxes withheld by ocala $22,000
FICA taxes withheld by Farah $2,295
FICA taxes withheld by ocala $5,355
Interest income from Sun National bank $1,800
dividend income $10,000
Interest paid for mortgage:
Home in California $6,780
Home in Orlando $3,800
Property taxes paid in California $4,100
Sales taxes paid in California and Florida State $3,125
income taxes paid in California $2,900

Donna was born on May 15, 1962.
The zip code for her Florida address is 33442.
Donna's federal income tax for the previous tax year was only $5000
The $10,000 Dividend Income is to be treated as QUALIFYING Dividend Income.
Here is some clarifying information for you:
Social Security (OASDI) Taxes were withheld by Farah in accordance with 2014 requirements
Medicare Taxes were withheld by Farah in accordance with 2014 requirements

Social Security (OASDI) Taxes withheld by Ocala in accordance with 2014 requirements Medicare Taxes withheld by Ocala in accordance with 2014 requirements Property Taxes Summary and Clarification:
Donna Harp paid $4100 of property taxes to the California taxing authorities.
Donna also wrote a check to the Florida taxing authorities for $3600 to cover the property taxes on the Florida property. It is crucial for you to understand that although Donna paid this $3600 property tax bill, she only bought the Florida house on July 15 and the seller of the house that lived in it from January - July 15 paid Donna $1950 to cover the real estate taxes for that period. That is what the book means when it says "The $3600 of property taxes for the house on Orlando Florida were prorated with 1950 being apportioned to the seller and 1650 to the buyer.

Prepare form 1040 including schedules a, B and D. Prepare form 3903 and form 8960. use the wroksheet on page 12-24 to determine the amount of recognized gain on the sale of the residence

Explanation / Answer

1040

including schedules a, B and D. these:------------------

Continuation Sheet for Schedule D
Form
If you have too many sale transactions to fit on Schedule D, use one or more copies of this form to report the additional sales.

These instructions are based mostly on Regulations sections 1.1411-1 through 1.1411-10, which are effective for tax years beginning after 2013.

Form 1040 U.S. Individual Income Tax Return
Form  Instructions
Use this form if you can't use Form 1040EZ or Form 1040A. Schedule A
Schedule B Itemized Deductions
Interest and Ordinary Dividends
Form  Instructions
The IRS combines both forms in a single electronic file, and also combines the instructions for both forms in a (different) single electronic file.
Schedule A: For more information see Your Itemized Deductions.
Schedule B: Most taxpayers don't need this schedule unless they have $1,500 or more of interest income, or $1,500 or more of ordinary dividend income. Schedule C Profit or Loss from Business
Form  Instructions
Use to report income and deductions from a sole proprietorship (a business or profession of your own). For more information see Your Business. Schedule C-EZ Net Profit from Business
Form & Instructions
You can use this easier version of Schedule C if you don't have a loss, have business expenses of $2,500 or less, and meet other requirements set forth at the top of this form. Schedule D Capital Gains and Losses
Form  Instructions
Use to report sales or involuntary conversions of capital assets, capital gain distributions, and nonbusiness bad debts. If your only capital gains are distributions from mutual funds, see Form 1040 instructions for line 13 to determine whether you need this schedule. Also see Your Investments. Schedule D-1

Continuation Sheet for Schedule D
Form
If you have too many sale transactions to fit on Schedule D, use one or more copies of this form to report the additional sales.

These instructions are based mostly on Regulations sections 1.1411-1 through 1.1411-10, which are effective for tax years beginning after 2013.

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