Comprehensive Problem 4-1

Skylar and Walter Black have been married for 5 years. They liveat 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar isa homemaker and Walter is a high school teacher. His W-2 form islocated on the next tab. Skylar's Social Security number is222-43-7690 and Walt's is 700-01-0002.

The Blacks incurred the following expenses during their movefrom Maine to Nevada in January of 2017:

Cost of moving furniture $4,775 Travel (2,988 miles at $0.17) 508 Lodging en route 520 Meals en route 90 House-hunting trip before the move 750

The school district reimbursed Walter $550 for moving expenses.These are reflected on his W-2. Walter’s previous job, as a highschool teacher in Maine, was only 5 miles from his home. Skylar wasunemployed prior to the move.

The Blacks own a ski condo located at 123 Buncombe Lane, BrianHead, UT 84719. The condo was rented for 183 days during 2017 andused by the Blacks for 17 days. Pertinent information about thecondo rental is as follows:

Rental income $16,000 Mortgage interest reported on Form 1098 8,600 Homeowners' association dues 5,200 Utilities 1,200 Maintenance 3,800 Depreciation (assume fully depreciated) 0

The above amounts do not reflect any allocation between rentaland personal use of the condo. The Blacks are active managers ofthe condo.

Required:
Complete Form 1040 and the schedules and forms provided for theBlacks.

If an amount box does not require an entry or the answer iszero, enter "0".

Do not round any percentages.

If required, round your answers to the nearest dollar.

If required, enter a "loss" as a negative number on the taxform. Do not enter deductions as negative numbers.

Note: Special instructions for Form 8582: Ifrequired, use the minus sign to enter a "loss" as a negative numberon the lines 1d, 4 and 16. However, per the instructions on the taxreturn, enter all numbers in Part II as positive amounts.

Walter's earnings from teaching are:

a Employee's social security number 700-01-0002 OMB No. 1545-0008 Safe, accurate, FAST! Use IRS e ~ file Visit the IRS website at www.irs.gov/efile b Employer identification number (EIN) 31-1238967 1 Wages, tips, other compensation 50,674.00 2 Federal income tax withheld 4,700.00 c Employer's name, address, and ZIPcode Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 3 Social security wages 50,674.00 4 Social security tax withheld 3,141.79 5 Medicare wages and tips 50,674.00 6 Medicare tax withheld 734.77 7 Social security tips 8 Allocated tips d Control number 9 Verification code 10 Dependent care benefits e Employee's first name and initial Lastname Walter Black 883 Scrub Brush Street, Apt# 52B Las Vegas, NV 89125 Suff. 11 Nonqualified plans 12a See instructions for box 12 C o d e P 550.00 13 Statutory employee Retirement plan Third-party sick pay ? ? ? 12b C o d e DD 7,800.00 14 Other 12c C o d e 12d C o d e f Employee's address and ZIP code 15State NV Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name Form W-2 Wage and Tax Statement 2017 Department of the Treasury—Internal RevenueService Copy B–To Be Filed With Employee's FEDERALTax Return. This information is being furnished to the Internal RevenueService. Complete Form 1040 for Walter and Skylar Black. Form 1040 Department of the Treasury—Internal Revenue Service (99) U.S. Individual Income Tax Return 2017 OMB No. 1545-0074 IRS Use Only For the year Jan. 1–Dec. 31, 2017, or other tax yearbeginning , 2017, ending , 20 See separate instructions. Your first name and initial Walter Last name Black Your social security number 700-01-0002 If a joint return, spouse's first name and initial Skylar Last name Black Spouse's social security number 222-43-7690 Home address (number and street). If you have aP.O. box, see instructions. 883 Scrub Brush Street Apt. no. 52 B ? Make sure the SSN(s) above and on line 6c are correct. City, town or post office, state, and ZIP code. Ifyou have a foreign address, also complete spaces below (seeinstructions). Las Vegas, NV 89125   Presidential ElectionCampaign Check here if you, or your spouse if filing jointly, want $3 to goto this fund. Checking a box below will not change your tax orrefund. ? You    ?Spouse Foreign country name Foreign province/state/country Foreign postal code Filing Status Exemptions 6a Yourself. If someone can claim youas a dependent, do notcheck box 6a . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . } Boxes checked on 6a and 6b b Spouse . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . No. of children on 6c who: • lived with you c Dependents: (2)Dependent's social securitynumber (3)Dependent's relationship toyou (4) ? If child under age 17qualifying for child tax credit (see instructions) (1) First name Last name • did not live with you due to divorce orseparation (see instructions) If more than four dependents, see instructions andcheck here ? ? Dependents on 6c not enteredabove Add numbers on lines above ? d Total number of exemptions claimed . . . . . . . .. . . . . . . . . . . . . . . . . . . . . Income Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-Rif tax was withheld. If you did not get a W-2, see instructions. 7 Wages, salaries, tips, etc. Attach Form(s) W-2 . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8a Taxable interest. Attach ScheduleB if required . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 8a b Tax-exempt interest. Donot include on line 8a . . . . . . . . . 8b 9a Ordinary dividends. Attach Schedule B if required .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9a b Qualified dividends . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 9b 10 Taxable refunds, credits, or offsets of state andlocal income taxes . . . . . . . . . . . . . . . . 10 11 Alimony received . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 12 Business income or (loss). Attach Schedule C orC-EZ . . . . . . . . . . . . . . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D ifrequired. If not required, check here ? ? 13 14 Other gains or (losses). Attach Form 4797 . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15a IRA distributions . . . . . . . . . . . 15a b Taxable amount . . 15b 16a Pensions and annuities . . . . . . 16a b Taxable amount . . 16b 17 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 17 18 Farm income or (loss). Attach Schedule F . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Unemployment compensation . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 19 20a Social security benefits 20a b Taxable amount . . 20b 21 Other income. List type and amount _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 21 22 Combine the amounts in the far right column forlines 7 through 21. This is your total income ? .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 22 Adjusted Gross Income 23 Educator expenses . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 23 24 Certain business expenses of reservists, performingartists, and fee-basis government officials. Attach Form 2106 or2106-EZ 24 25 Health savings account deduction. Attach Form 8889. . . . . 25 26 Moving expenses. Attach Form 3903 . . . . . . . . .. . . . . . . . . 26 27 Deductible part of self-employment tax. AttachSchedule SE 27 28 Self-employed SEP, SIMPLE, and qualified plans . .. . . . . . . 28 29 Self-employed health insurance deduction . . . . .. . . . . . . . 29 30 Penalty on early withdrawal of savings . . . . . .. . . . . . 30 31a Alimony paid   bRecipient's SSN ? ________ 31a 32 IRA deduction . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 32 33 Student loan interest deduction . . . . . . . . . .. . . . . . . . . . . 33 34 Reserved for future use . . . . . . . . . . . . . .. . . 34 35 Domestic production activities deduction. AttachForm 8903 35 36 Add lines 23 through 35 . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 37 Subtract line 36 from line 22. This is youradjusted gross income . . . . . . . . . . . ? 37 For Disclosure, Privacy Act, and Paperwork ReductionAct Notice, see separate instructions. Cat. No. 11320B Form 1040 (2017) Form 1040 (2017) Walter and Skylar Black 700-01-0002 Page 2 38 Amount from line 37 (adjusted gross income) 38 Tax and Credits 39a Check if: { ? You were born before January 2, 1953, ?Blind. ? Spouse was born before January 2, 1953, ?Blind. } Total boxes checked ? 39a b If your spouse itemizes on a separate return or youwere a dual-status alien, check here ? 39b . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . ? Standard Deduction for— • People who check any box on line 39a or 39bor who can be claimed as a dependent, seeinstructions. • All others: Single or Married filing separately, $6,350 Married filing jointly or Qualifying widow(er), $12,700 Head of household, $9,350 40 Itemized deductions (from ScheduleA) or your standard deduction(see left margin) 40 41 Subtract line 40 from line 38 . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 42 Exemptions. If line 38 is $156,900or less, multiply $4,050 by the number on line 6d. Otherwise, seeinstructions . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 42 43 Taxable income. Subtract line 42from line 41. If line 42 is more than line 41, enter -0-. 43 44 Tax (see instructions). Check ifany from: a ? Form(s) 8814 b ?Form 4972 c ? _____ 44 45 Alternative minimum tax (seeinstructions). Attach Form 6251 . . . . . . . . . . . . . . . 45 46 Excess advance premium tax credit repayment. AttachForm 8962 . . . . . . . . . . . . . . . 46 47 Add lines 44, 45, and 46 . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ? 47 48 Foreign tax credit. Attach Form 1116 if required . . . . . . .. . . . . . 48 49 Credit for child and dependent care expenses. Attach Form2441 49 50 Education credits from Form 8863, line 19 . . . . . . . . . . .. . . . 50 51 Retirement savings contributions credit. Attach Form 8880 . .. 51 52 Child tax credit. Attach Schedule 8812, if required . . . . . .. . 52 53 Residential energy credit. Attach Form 5695 . . . . . . . . . .. 53 54 Other credits from Form: a ? 3800b ? 8801 c ? ________ 54 55 Add lines 48 through 54. These are yourtotal credits . . . . . . . . . . . . . . . . . .. . . . 55 56 Subtract line 55 from line 47. If line 55 is morethan line 47, enter -0- . . . . . . . . ? 56 Other Taxes 57 Self-employment tax. Attach Schedule SE . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 57 58 Unreported social security and Medicare tax fromForm: a ? 4137 b ? 8919 . . . . .. 58 59 Additional tax on IRAs, other qualified retirementplans, etc. Attach Form 5329 if required 59 60a Household employment taxes from Schedule H . . . .. . . . . . . . . . . . . . . . . . . . . . . 60a b First-time homebuyer credit repayment. Attach Form5405 if required . . . . . . . . . 60b 61 Health care: individual responsibility (see instructions) Full-year coverage ? 61 62 Taxes from: a ? Form 8959b ? Form 8960 c ? Instructions;enter code(s) _ _ _ _ _ _ 62 63 Add lines 56 through 62. This is your totaltax . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ? 63 Payments 64 Federal income tax withheld from Forms W-2 and 1099. . . . . . 64 If you have a qualifying child, attach ScheduleEIC. 65 2017 estimated tax payments and amount applied from2016 return 65 66a Earned income credit (EIC) . . . .. . . . . . . . . . . . . . . . . . . . . 66a b Nontaxable combat pay election . . . . . . 66b 67 Additional child tax credit. Attach Schedule 8812 .. . . . . . . . . . 67 68 American opportunity credit from Form 8863, line 8. . . . . . . . 68 69 Net premium tax credit. Attach Form 8962 . . . . .. . . . . . . . . . 69 70 Amount paid with request for extension to file . .. . . . . . . . . 70 71 Excess social security and tier 1 RRTA tax withheld. . . . . . . . . 71 72 Credit for federal tax on fuels. Attach Form 4136 .. . . . . . . . . 72 73 Credits from Form: a ? 2439b ? Reserved c ? 8885d ? 73 74 Add lines 64, 65, 66a, and 67 through 73. These areyour total payments . . . . . . . . . ? 74 Refund 75 If line 74 is more than line 63, subtract line 63from line 74. This is the amount you overpaid 75 76a Amount of line 75 you want refunded toyou. If Form 8888 is attached, check here ? ? 76a Direct deposit? See instructions. ? b Routing number ? c Type:  ? Checking  ?Savings ? d Account number 77 Amount of line 75 you want applied to your2018 estimated tax ? 77 Amount You Owe 78 Amount you owe. Subtract line 74from line 63. For details on how to pay, see instructions . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . ? 78 79 Estimated tax penalty (see instructions) . . . . .. . . . . . . . . . . . . . . 79 Third Party Designee Do you want to allow another person to discuss thisreturn with the IRS (see instructions)? ? Yes.Complete below. ? No Designee's name ? Phone no. ? Personal identification number (PIN) ? Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I haveexamined this return and accompanying schedules and statements, andto the best of my knowledge and belief, they are true, correct, andaccurately list all amounts and sources of income I received duringthe tax year. Declaration of preparer (other than taxpayer) isbased on all information of which preparer has any knowledge. ? Your signature Date Your occupation Teacher Daytime phone number Spouse's signature. If a joint return,bothmust sign. Date Spouse's occupation Homemaker If the IRS sent you an Identity Protection PIN, enter it here(see inst.) Paid Preparer Use Only Print/Type preparer's name Preparer's signature Date Check ? if self-employed PTIN Firm's name ? Firm's EIN ? Firm's address ? Phone no. Go towww.irs.gov/Form1040 for instructions andthe latest information. Form 1040 (2017)