Spencer Duck is single and his eight year old son, Mitch, lives with him nine months of the year in his mother, spencer’s ex-wife, during the summer months. his mother provides more than half of Mitch’s support and has agreed to allow her to claim Mitch as her dependent. Spencer has a salary of $39000 and Itemized deductions of $4000. Taxes withheld during the year amount to $3221. On July 14 of the current year, he sold the following assets: Spencer received a K-1 from a partnership indicating that his share of the partnership STCL is $200
Land was sold for $35,000. the land was received as a property settlement on January 10,2001, when the land’s FMV amounted to $30,000. His ex-wife’s basis for the land purchases on January 10, 1991, was $18,600.
A personal use computer acquired on March 2 last year for $4,000 was sold for $2,480.
A membership card for a prestigious country club was sold for $8500. the cars was acquired on OCT 10, 1993 for $6,000
Marketable securities held as an investment were sold for $20,000. the securities were inherited from his uncle, who died on march 10, of the current year when FMV fo the securities was $21,000. the uncle purchases the securities may 10,1990 for $10,700.
In addition to the above sales, Spencer received a $100 refund of state income taxes paid last year. Spencer used the standard deduction last year to compute his tax liability.
Prepare Form 1040 and Schedule D and Form 8949 for him