Question

Using the information below, complete the tax form 1040 above. Brian and Sheila Williams were married in October of 2008. They live at 1000 Main Street, Atlanta, GA 33127. Brian is a postal service worker. Sheila is a teacher at Grady High School. Brian’s social security number is 555-11-1111 and Sheila’s social security number is 555-22-2222. They have a dependent daughter Jayla who is 10 years old (Born on May 12th). Jayla’s social security number is 555-33-3333. In 2016, Brian's wages was $45,860 while Sheila's was $43,590.
Included or Excluded Items
Two years ago, the taxpayer loaned a friend $2000. The friend has filed for bankruptcy this year and will not be able to repay
Earned $100 interest on county municipal bonds
Found a diamond worth $1000 on the ground
Received $500 in death benefits fron Brian's father
Received $4,000 court settlement. $1,000 was punitive damanges.
Brian paid $400/month in child support
Received a $1000 gift from his brother
Sheila won $100 playing bingo
Brian paid $200/month in alimony to his ex-wife
Sheila received a $1000 gift from her mother
Sheila spent $300 on supplies for her classroom
Portfolio Investments
Stock	Acquired	Sold	Sales Price	Cost (Basis)	Qualified Dividends
Red Stock	2/1/2016	10/5/2016	$6,000	$2,500	$0
White Stock	6/11/2009	10/15/2016	$5,000	$4,000	$100
Blue Stock	10/1/2005	8/3/2016	$2,000	$10,000	$0
Black Stock	3/6/2016	12/15/2016	$3,000	$5,000	$0
Yellow Stock	4/5/2006	N/A	N/A	$5,000	$300
Interest Income Source	Amount
Money Market Account	$200
Savings Account	$25
State Municipal Bonds	$35
Rental Property
They own and rent two pieces of residential real estate in Miami, FL. These properties were acquired with cash (so there are no mortgages on the homes). They both have real estate broker licenses in Georgia and Florida. They dedicate enough hours (through their business) to qualify as a “real estate professional” with regard to these properties.
Property 1
The first property is located at 17750 NW 17th Ave, Miami, FL. They collect $1,000 monthly in rent. The property was purchased June 30, 2016 for $150,000. The tax records show that the value of the land is $30,000 and the value of the home was $90,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax		$7,000/yr
Repairs		$   900/yr
Insurance		$1,200/yr
Washing Machine		$300		(purchased 6/2/2015)
Refrigerator		$700		(purchased 7/1/2016)
Furniture		$2,000		(purchased 4/1/2014)
Property 2
The second property is located at 5610 NW 11th Ave, Miami, FL. They collect $1,500 monthly in rent. The property was purchased on June 12, 2016 for $100,000. The tax records show that the value of the land is $20,000 and the value of the home was $80,000 when purchased. They actively participate in the management of the real property.
The property has the following expenditures:
Property tax		$6,200/yr
Repairs		$3,000/yr
Insurance		$1,200/yr
Legal fees		$   500/yr
Advertising Expense		$   500/yr

Answer 1