Bea Jones (birthdate March 27, 1984) moved from Texas to Florida in December 2015. She lives at 654 Ocean Way, Gulfport, FL 33707. Bea’s social security number is 466-78-7359 and she is single. Her earnings and income tax withholding for 2016 for her job as a manager at a Florida shrimp processing plant are:
Earnings from the Gulf Shrimp Co. – $42, 175
Federal Income Tax withheld – 7,800
State income tax withheld – 0
Bea’s other income includes interest on a savings account at Beach National Bank of $2,175 and $620 per month alimony from her ex-husband.
During 2016, Bea paid the following amounts (all of which can be substantiated):
Home mortgage interest – $8,780
Auto loan interest – 2,300
State sales tax – 820
Property taxes on personal residence – 3,233
Unreimbursed hospital bills – 3, 250
Doctor bills – 2,564
Other deductible medical expenses – 720
Income tax preparation fee – 600
Job hunting expenses – 925
Union Dues – 800
In July 2016, someone broke into Bea’s house and stole a diamond ring she had purchased in 2004. The diamond ring had a fair market value of $11,000 and a tax basis to Bea of $7,700. The ring was uninsured.
Required: Complete Bea’s federal tax return for 2016. Use Form 1040, Schedule A, Schedule B, and Form 4684. Make realistic assumptions about any missing data.
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