Problem: Ted and Michelle Lasso are married and file a joint return. Their Social Security numbers are 000-00-1111 and 000-00-2222, respectively. Ted and Michelle have two sons, Henry, age 5, and Jamie, age 12. Henry's Social Security number is 000-00-3333 and Jamie's is 000-00-4444. They live at 3201 Maplewood Ave, Richmond, VA 23221. During 2023, they report the following items: Salary from W-2 (Ted - $74,000; Michelle $132,000) Federal tax withheld State tax withheld $206,000 19,000 12,360 Interest income from savings accounts 1,900 Qualified dividend income from Higgins Corp. stock 3,700 Cash contributions to charity 9,000 Rental of a condominium in Wichita: Rental income (75 days) 15,000 Interest Expense 7,000 Property taxes 5,200 Maintenance 1,700 Insurance 2,300 Days of personal use 25 The address of the condo is 1845 E 21st St, Wichita, Kansas 67260. It was purchased in 2008 for $200,000. During the year the following events also occur:
a. They received a state tax refund of $900. Their prior year itemized deductions were $42,792.
b. On June 20, 2023, Michelle sells 400 shares of Beard Corporation stock for $20,000. She purchased the stock on December 12, 2009 for $23,000.
c. On September 19, 2023, Ted discovers that the 4,000 shares of penny stock of Rojas, Inc. he purchased on January 2 of the prior year are completely worthless. He paid $6,300 for the stock.
d. Instead of accepting the $60 the utility store offers for their old dishwasher, they donate it to Goodwill on Nove