Comprehensive Problem
America Los Rios (age 36) is a single taxpayer, living at 4700 Oak Drive, Sacramento, CA 95841. Her Social Security number is 976-23-5132. America's earnings and income tax withholding as the manager of a local supermarket store for 2015 are:
| Earnings |
$69,000 |
| Federal income tax withheld |
14,800 |
| State income tax withheld |
2,300 |
America's other income includes qualifying dividends on American River Corporation stock of $4,400 and interest on a long-term certificate of deposits at Bank of Sacramento of $5,205.
During the year, America paid the following amounts (all of which can be substantiated):
| Home mortgage interest |
$10,600 |
| Credit card interest |
550 |
| Auto loan interest |
1,700 |
| Life insurance (universal policy) |
750 |
| Property taxes on personal residence |
1,150 |
| Blue Cross medical insurance premiums |
650 |
| Other medical expenses |
790 |
| Income tax preparation fee |
250 |
| Charitable contributions (in cash) |
575 |
In her spare time, America trades stocks and bonds. During the year, she sold several stocks and received a Form 1099-B, which showed the following:
| Stock |
Acquired |
Sold |
Price |
Basis |
| Red Co. |
02/01/05 |
10/05/15 |
$5,500 |
|
$2,500 |
| Green Co. |
06/11/15 |
08/03/15 |
4,000 |
|
5,000 |
| Blue Co. |
12/12/14 |
09/22/15 |
6,200 |
|
5,000 |
| White Co. |
05/12/04 |
10/15/15 |
7,000 |
|
4,000 |
| Black Co. |
09/15/08 |
11/01/15 |
5,500 |
|
6,750 |