Question

On May 15, 2018 Joseph and Gladys sold their personal residence for $585,150 and purchased a new house for $485,000. They had owned the old house for 5 years and Gladys had inherited it when her mother passed away. Her mother had paid $17,000 for it when she purchased it many years ago, and it had a market value of $525,000 when she passed away) The house had been their personal residence ever since Gladys mother passed away. They moved into the new house on May 18, 2018 Joseph sold the following securities during the year and received a 1099-B that showed the following information Security Description Purchased Sold Selling Price Adjusted Basis $4,550 3,600 $10,510 $5,320 $56,480 100 shares 02/11/97 04/16/18 3,080 100 shares 07/17/01 07/31/18 2,000 Orange Inc. Blue, Inc. Red (Preferred 100 shares 12/08/15 09/25/2018 $8,975 Plum (Bonds) Peach Mutual Fund 5,010 shares 05/30/06 10/22/2018 $60,120 due 4/2015 12/30/05 01/02/2018 $5,155 The selling price is net of sales commissions. In addition to the above amounts, the Hot Mutual Fund distributed a long-term capital gain of $450 on December 30, 2018. To do: Using the information above, complete the 1040 form for Joseph and Gladys including all additional forms and schedules. You may use tax software or can access the required forms on the IRS.gov website. Please use 2018 forms. The completed tax form is due in hard copy on the day of the final exam at the beginning of the exam period

Answer 1

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