Comprehensive Problem 4-2A Dr. Theodore E. Lariat is a single taxpayer born on September 22, 1973. He lives at 45 Mounta

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Comprehensive Problem 4-2A
Dr. Theodore E. Lariat is a single taxpayer born on September22, 1973. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA99210. Dr. Lariat's Social Security number is 775-88-9530. Dr.Lariat works for the Pine Medical Group, and his earnings andincome tax withholding for 2021 are reported on the W-2 form (seeseparate tab).
Dr. Lariat owns a rental house located at 672 Lake Street,Spokane, WA 99212. The house rents for $1,000 per month and wasrented for the entire year. The following are the related expensesfor the rental house:
The house was purchased on July 5, 1986. Dr. Lariat handles allrental activities (e.g., rent collection, finding tenants, etc.)himself. He spends about 10 hours per month on the rental.
In 2021, Dr. Lariat sold his primary residence as he wished tomove to an apartment to avoid the maintenance and upkeep of asingle-family home. Dr. Lariat's home sold on February 12, 2021 for$345,000 net after commissions. He acquired the home on June 3,2003 for $260,000 and had made improvements of $10,000.
Dr. Lariat did not receive an EIP in 2021.
Required:Complete Form 1040 and the schedules and forms provided for Dr.Lariat.
Dr. Lariat's W-2 Form
Question Content Area
Dr. Lariat's W-2 from the Pine Medical Group is below.