California "mock return" Problem : Ron and Susan Lee_2016 Tax Year

Anonymous
timer Asked: Jun 27th, 2018
account_balance_wallet $40

Question description

Ron & Susan Lee filed their MFJ Federal Return Form 1040 for 2016: (I attached the pdf below)

Using the information provided in the Lee's1040 and below please prepare California 2016 return for Ron and Susan Lee.

Ron Lee was born May 31, 1949 and worked as an engineer at Burk Corporation, his taxable wages (after 401k deductions, etc.) is $38,500 for 2016 (he retired in March 2016). His wife Susan (born July 25, 1950) is an office manager for Five Star Systems – she earned $122,000 during the year. Their wage amounts are the same for federal and California. Ron received $24,500 in gross social security payments from the federal government.

Ron has had $11,000 of Federal income taxes withheld from his paychecks and $4,500 California income taxes withheld from his paychecks. Susan had $31,200 Federal income tax and $13,750 California income tax withheld from her paycheck. Ron had $2,500 of federal income taxes withheld on his social security payments.

They have sold some stocks during the year – see Schedule D. You may assume that the cost basis for California purposes is the same as for federal purposes. None of the stocks sold are qualified small business stock.

They received $1,500 of qualified dividend income from their Oracle Corporation stock. They also received interest income of $1,190 from B of A Bank.

In April 2016, the Lee’s filed their 2015 California income tax return and received a $905 tax refund from the state of California. They itemized their deductions in 2015.

They have children but they have graduated from college and moved out – they provide no support.

They have owned their own home in San Jose since 1987, their mortgage is all paid off, and they have property taxes of $5,800. They own two cars and the deductible part of their DMV fees is $155.

Here is a list of the Chang’s cash donations to various organizations:

Saint Joseph’s Church $2,000

San Jose Mercury News Book Drive $500

San Jose State University (Fundraising Campaign) $2,000

American Red Cross $2,500

Make-A-Wish Foundation $500

With time on his hands, Patrick has prepared and filed the family Form 1040 but he has hired you to prepare the California Form 540 (and any required schedules). You have reviewed the Federal forms and have already concluded they are correct.

You need to prepare a California Form 540 and a California Schedule CA540. If required, you should also prepare a California Schedule D540 (hint: read the directions). You may assume there is NO Federal or California AMT to consider.

Check figure: Form 540, Line 94 Overpaid Tax is $6,440.

COVER PAGE Filing Checklist for 2016 Tax Return Filed On Standard Forms Prepared on: 05/13/2017 07:48:42 pm Return: C:\Users\Irene\Documents\ACTG067\2017 CA Material\2016 CA mock return R & S Lee CA HW#2\Ron Lee 2016 Tax Return.T16 To file your 2016 tax return, simply follow these instructions: Step 1. Sign and date the return Because you're filing a joint return, Ron and Susan both need to sign the tax return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848, Power of Attorney and Declaration of Representative. Step 2. Assemble the return These forms should be assembled behind Form 1040 --U.S. Individual Income Tax Return - Schedule A - Schedule D - - Form 8949 Staple these documents to the front of the first page of the return: Form W-2: Wage and Tax Statement 1st (Burk Corporation) 2nd (Five Star Systems) Step 3. Mail the return Mail the return to this address: Department of the Treasury Internal Revenue Service Fresno, CA 93888-0002 We recommend that you use one of these IRS-approved methods to send your return. Retain the proof of mailing to avoid a late filing penalty: - U.S. Postal Service certified mail. - DHL Express, Express 9:00, Express 10:30, Express 12:00, Express Worldwide, Express Envelope, Import Express 10:30, Import Express 12:00, and Import Express Worldwide. - FedEx First Overnight, Priority Overnight, Standard Overnight, 2 Day, International Next Flight Out, International Priority, International First, or International Economy. - United Parcel Service Next Day Air Early AM, Next Day Air, Next Day Air Saver, 2nd Day Air, 2nd Day Air A.M., Worldwide Express Plus, or Worldwide Express. Step 4. Keep a copy Print a second copy of the return for your records. We recommend that you also print and retain these supporting forms, which don't need to be sent to the IRS: - - Background Worksheet - - Last Year's Data Worksheet - - Form 1099-INT/OID - - Form 1099-DIV - - Form 1099-G - - Charitable Worksheet - - Social Security Worksheet - - Capital Gains and Losses Worksheet - - Health Care Coverage - - Health Care Summary 2016 return information - Keep this for your records Here is some additional information about your 2016 return. Keep this information with your records. You will need your 2016 AGI to electronically sign your return next year. Quick Summary Income Adjustments - $222,352 $0 Deductions Exemption(s) Taxable income Tax withheld or paid already Actual tax due Refund applied to next year Refund * Your long-term capital gains and qualifying dividends are taxed at a lower rate than your other income. As a result, your total federal tax is less than the tax shown on the IRS's Tax Table. - - $31,705 $8,100 $182,547 $44,700 $33,286 $0 $11,414 (99) Department of the Treasury—Internal Revenue Service F o r m For the year Jan. 1–Dec. 31, 2016, or other tax year beginning 1040 U.S. Individual Income Tax Return 2016 Your first name and initial OMB No. 1545-0074 , 2016, ending IRS Use Only—Do not write or staple in this space. See separate instructions. Your social security number , 20 Last name Ron Lee If a joint return, spouse's first name and initial Susan 342-90-1243 Last name Spouse's social security number Lee 360-84-5643 Apt. no. Home address (number and street). If you have a P.O. box, see instructions. Make sure the SSN(s) above and on line 6c are correct. 180 Oak River Drive City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). San Jose CA Foreign country name Filing Status Foreign province/state/county Single 1 2 Check only one box. 3 Exemptions 6a X b c Foreign postal code Married filing separately. Enter spouse's SSN above and full name here. Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund You Spouse 4 Head of household (with qualifying person). (See instr.) If the qualifying person is a child but not your dependent, enter this child's name here. 5 Qualifying widow(er) with dependent child Married filing jointly (even if only one had income) X X Presidential Election Campaign 95134 Yourself. If someone can claim you as a dependent, do not check box 6a Boxes checked on 6a and 6b . . . . . . . Spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) X if child under age 17 (2) Dependent's (3) Dependent's Dependents: qualifying for child tax credit (1) First name Last name social security number relationship to you • • lived with you did not live with you due to divorce or separation (see instructions) (see instructions) If more than four dependents, see instructions and check here Dependents on 6c not entered above Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a W-2, see instructions. Adjusted Gross Income 7 8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . . 0 Tax-exempt interest. Do not include on line 8a . . . . . . . . . . . . . . 8b Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . . . . 9a Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 9b 10 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . 11 Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . . . . . . . . . . . . 13 14 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15b 15a IRA distributions . . . . . . . . . . . . . . 15a b Taxable amount . . . 16b 16a Pensions and annuities . . . . . . . . . . . 16a b Taxable amount . . . 17 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . 18 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 19 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,500 20a Social security benefits b Taxable amount . . . . . . . . 20b 20a 21 21 Other income. List type and amount _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8a b 9a b 22 23 24 25 26 27 28 29 30 31a 32 33 KIA Add numbers on lines above d Total number of exemptions claimed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . Income 2 No. of children on 6c who: Combine the amounts in the far right column for lines 7 through 21. This is your total income Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ . . . . . . . 24 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . 25 Moving expenses. Attach Form 3903 . . . . . . . . . . . . . . . . . . . 26 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . 27 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . 28 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . 29 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . 30 31a Alimony paid b Recipient's SSN IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . 33 34 Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . Domestic production activities deduction. Attach Form 8903 . . . . . . . 35 22 2 160,500 1,190 1,500 905 0 37,432 0 0 0 20,825 0 222,352 0 0 0 0 0 0 0 34 0 35 36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . . . . . . . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 36 37 0 222,352 Form 1040 (2016) Ron Form 1040 (2016) Tax and Credits Standard Deduction for— • People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. • All others: Single or Married filing separately, $6,300 Married filing jointly or Qualifying widow(er), $12,600 Head of household, $9,300 Other Taxes Payments If you have a qualifying child, attach Schedule EIC. Page 2 222,352 38 . . . . . . 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 31,705 190,647 8,100 182,547 33,286 0 Itemized deductions (from Schedule A) or your standard deduction (see left margin) 41 Subtract line 40 from line 38 42 Exemptions. If line 38 is $155,650 or less, multiply $4,050 by the number on line 6d. Otherwise, see instructions 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- 44 Tax (see instructions). Check if any from: 45 46 Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . . . . . . 46 47 Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 33,286 48 Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . . 48 49 Credit for child and dependent care expenses. Attach Form 2441 . . . . 49 50 Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . 50 51 Retirement savings contributions credit. Attach Form 8880 . . . . . . . 51 52 53 Child tax credit. Attach Schedule 8812, if required . . . . . . . . . . . Residential energy credits. Attach Form 5695 . . . . . . . . . . . . . . 52 54 Other credits from Form: a 55 56 Add lines 48 through 54. These are your total credits . . . . . . . . . . . . . . . . . . . . . . . Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . . . . . . . . . 55 57 Self-employment tax. Attach Schedule SE 57 0 33,286 0 0 0 0 0 58 Form(s) 8814 a 3800 b b Form 4972 . 42 . . . . . . . . . . . . . . . 43 44 c 0 0 53 0 54 8801 c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Unreported social security and Medicare tax from Form: a 4137 8919 . . . . . . . . b 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . . . . 60 a Household employment taxes from Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . b First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . . . . . . . . . 61 Health care: individual responsibility (see instructions) 62 Taxes from: a 63 Add lines 56 through 62. This is your total tax 64 65 Form 8959 b Form 8960 c Full-year coverage X . . . . . . . . . . 56 58 59 60a 60b 61 0 33,286 62 Instructions; enter code(s) . . . . . . . . . . . . . . . . . . . . . . . . . 44,700 64 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . 0 2016 estimated tax payments and amount applied from 2015 return . . 65 63 66a 66a Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . 66b b Nontaxable combat pay election . . . . . 67 Additional child tax credit. Attach Schedule 8812 . . . . . . . . . . . . 68 American opportunity credit from Form 8863, line 8 . . . . . . . . . . . 67 Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . 68 69 70 Amount paid with request for extension to file . . . . . . . . . . . . . . 70 71 Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . 71 72 73 Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . . 72 Credits from Form: Reserved c 8885 d a 2439 b 73 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . . . . . . . . 74 Direct deposit? See instructions. 342-90-1243 40 69 Refund Lee Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . X You were born before January 2, 1952, Blind. 39a Check Total boxes 2 X Spouse was born before January 2, 1952, checked 39a if: Blind. 39b b If your spouse itemizes on a separate return or you were a dual-status alien, check here 38 0 0 44,700 11,414 11,414 74 75 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid . . . 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here . . . . b Routing number XXXXXXXXX c Type: X Checking Savings d Account number XXXXXXXXXXXXXXXXX 75 76a 0 77 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions . . 78 79 Estimated tax penalty (see instructions) . . . . . . . . . . . . . . . . . 79 Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below 77 Amount of line 75 you want applied to your 2017 estimated tax Amount You Owe X No Third Party Designee's Phone Personal identification Designee name no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and Sign accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number Here Joint return? See Engineer instructions. Keep a copy for your records. Paid Preparer Use Only KIA Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Manager Print/Type preparer's name Preparer's signature Date Firm's name Firm's EIN Firm's address Phone no. www.irs.gov/form1040 Check if self-employed PTIN Form 1040 (2016) SCHEDULE A (Form 1040) Itemized Deductions OMB No. 1545-0074 2016 Information about Schedule A and its separate instructions is at www.irs.gov/schedulea. Department of the Treasury (99) Internal Revenue Service Attachment Sequence No. Attach to Form 1040. Ron Medical and Dental Expenses Taxes You Paid Lee 342-90-1243 Caution. Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) . . . . . . . . . . 1 222,352 2 Enter amount from Form 1040, line 38 . . . 2 3 Multiply line 2 by 10% (10.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead 3 4 5 0 16,676 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . . State and local (check only one box): a. X Income taxes, or 18,250 5 . . . . . . . . . . . . . . . . . . . b. General sales taxes 5,800 Real estate taxes (see instructions) . . . . . . . . . . . . . . . . 6 6 7 Personal property taxes . . . . . . . . . . . . . . . . . . . . . . 8 Other taxes. List type and amount _______________ ___________________________________ 7 Note. Your mortgage interest deduction may be limited (see instructions). Gifts to Charity If you made a gift and got a benefit for it, see instructions. 9 Add lines 5 through 8 10 Home mortgage interest and points reported to you on Form 1098 . . . . . . . . . . . 11 Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address ___________________________________ ___________________________________ ___________________________________ 12 Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Mortgage insurance premiums (see instructions) . . . . . . . . . 14 Investment interest. Attach Form 4952 if required. (See instructions.) 15 Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . . . 16 Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 . . . . . . . 18 Carryover from prior year . . . . . . . . . . . . . . . . . . . . . . 19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . . . . . . . Casualty and Theft Losses 20 Job Expenses 21 and Certain Miscellaneous Deductions 22 23 24 25 26 27 28 Other Miscellaneous Deductions 29 Total Itemized Deductions KIA 4 0 9 24,205 155 0 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest You Paid 07 Your social security number Name(s) shown on Form 1040 10 0 11 0 12 13 0 0 14 . . . . . . . . . . . 15 0 19 7,500 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . . . . . . . 20 Unreimbursed employee expenses—job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See instructions.) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___________________________________ 0 21 ___________________________________ Tax preparation fees . . . . . . . . . . . . . . . . . . . . . . . . 22 Other expenses—investment, safe deposit box, etc. List type and amount _________________________ 0 23 ___________________________________ 0 24 Add lines 21 through 23 . . . . . . . . . . . . . . . . . . . . . . 222,352 Enter amount from Form 1040, line 38 . . . 25 4,447 Multiply line 25 by 2% (0.02) . . . . . . . . . . . . . . . . . . . . 26 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . . . . . . 27 Other—from list in instructions. List type and amount ________________ ________________________________________________ 28 0 16 7,500 17 0 0 18 . . . . . . . . . . . 0 0 Is Form 1040, line 38, over $155,650? No. Your deduction is not limited. Add the amounts in the far right column 31,705 for lines 4 through 28. Also, enter this amount on Form 1040, line 40. . . . . . . . 29 Yes. Your deduction may be limited. See the Itemized Deductions X Worksheet in the instructions to figure the amount to enter. 30 If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see Form 1040 instructions. Schedule A (Form 1040) 2016 SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service OMB No. 1545-0074 Capital Gains and Losses (99) Attachment Sequence No. 12 Your social security number Name(s) shown on return Ron Part I 2016 Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Lee 342-90-1243 Short-Term Capital Gains and Losses—Assets Held One Year or Less See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. 1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b (d) Proceeds (sales price) (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g) (e) Cost (or other basis) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) 0 0 1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . . . . . . . . 0 0 0 0 Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . . . . . . . . 0 0 0 0 Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . . . . . . . . 0 0 0 0 4 0 2 3 4 5 6 7 0 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on page 2 . . . . . . . . Part II 5 6 0) ( 7 0 (g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g) (h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g) Long-Term Capital Gains and Losses—Assets Held More Than One Year See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars. (d) Proceeds (sales price) (e) Cost (or other basis) 8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b 0 0 8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . . . . . . . . 0 0 0 0 Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . . . . . . . . 55,432 18,000 0 37,432 Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . . . . . . . 0 0 0 0 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) . from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 0 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 9 10 11 15 KIA Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on page 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see your tax return instructions. 0 15 0 ( 0) 37,432 Schedule D (Form 1040) 2016 Schedule D (Form 1040) 2016 Part III 16 Ron Lee 342-90-1243 Page 2 Summary Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 37,432 If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22. If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22. 17 Are lines 15 and 16 both gains? X Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22. 18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions . . . . . . 18 0 19 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 0 20 Are lines 18 and 19 both zero or blank? X Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. 21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of: The loss on line 16 or ($3,000), or if married filing separately, ($1,500) . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ( ) Note. When figuring which amount is smaller, treat both amounts as positive numbers. 22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). No. Complete the rest of Form 1040 and Form 1040NR. KIA Schedule D (Form 1040) 2016 Form 8949 (2016) Attachment Sequence No. Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on Page 1 Ron 12A Page 2 Social security number or taxpayer identification number Lee 342-90-1243 Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term transactions, see page 1. Note. You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) X (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS (F) Long-term transactions not reported to you on Form 1099-B 1 (a) Description of property (Example: 100 sh. XYZ Co.) ABC Stock (b) Date acquired (Mo., day, yr.) 03/16/00 (c) Date sold or disposed of (Mo., day, yr.) 08/13/16 (d) Proceeds (sales price) (see instructions) 55,432 (e) Cost or other basis See the Note below and see Column (e) in the separate instructions 18,000 Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions. (f) (g) Code(s) from instructions Amount of adjustment (h) Gain or (loss). Subtract column (e) from column (d) and combine the result with column (g) 0 37,432 0 0 0 0 0 0 0 0 0 0 0 0 0 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E above is checked), or line 10 (if Box F above is checked) 55,432 18,000 0 37,432 Note. If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. KIA Form 8949 (2016)

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