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Hi, I'm calculating their taxable income to be $100,377. Their net income is comprised of their wages of $153,888 plus their net capital gains of $17,200 including the gain on the real estate they donated. Total is $171,088. Their itemized deductions are $63,311. This is the total of their state income tax, interest from their home loan and heloc, and $51,326 charitable donation of the real estate. The donation is limited to 30% of their AGI. The remainder is carried forward. Their income is too high for them to deduct medical or job expenses.
can you tell me what tax forms I would need to show the work. I was thinking 1040, Scedule A and D???
That's correct. The donation of the real estate would be reported on Form 8283 with its total flowing to Sch A. The capital transactions are reported on Sch D including the net gain from the property donation. The totals flow to Form 1040.
Any questions about this?
are there any other forms I would need to show my work?
for example is there an IRS form for the Charitable donation?
That is Form 8283. Because of the donation, I would file this by paper and include a copy of the appraisal with the return.
I don't think I have any more questions at the moment. Thank you so much for all of your help!
It's been my pleasure!