TAX ASSIGNMENT

F o

rm 1040 2020U.S. Individual Income Tax ReturnDepartment of the Treasury—Internal Revenue Service (99) OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. Filing Status Check only one box.

Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)

If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying person is a child but not your dependent a

Your first name and middle initial Last name

If joint return, spouse’s first name and middle initial Last name

Home address (number and street). If you have a P.O. box, see instructions. Apt. no.

City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code

Foreign country name Foreign province/state/county Foreign postal code

Presidential Election Campaign 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

At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No

Standard Deduction

Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien

Age/Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind

Dependents (see instructions): If more than four dependents, see instructions and check here a

(2) Social security number

(3) Relationship to you

(4) � if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents

1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . 1 Attach Sch. B if required.

2a Tax-exempt interest . . . 2a b Taxable interest . . . . . 2b 3a Qualified dividends . . . 3a b Ordinary dividends . . . . . 3b 4a IRA distributions . . . . 4a b Taxable amount . . . . . . 4b 5a Pensions and annuities . . 5a b Taxable amount . . . . . . 5b 6a Social security benefits . . 6a b Taxable amount . . . . . . 6b 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . a 7 8 Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . . . 8 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . a 9

10 Adjustments to income: a From Schedule 1, line 22 . . . . . . . . . . . . . . 10a b Charitable contributions if you take the standard deduction. See instructions 10b c Add lines 10a and 10b. These are your total adjustments to income . . . . . . . . a 10c

11 Subtract line 10c from line 9. This is your adjusted gross income . . . . . . . . . a 11 12 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . .

Standard Deduction for— • Single or

Married filing separately, $12,400

• Married filing jointly or Qualifying widow(er), $24,800

• Head of household, $18,650

• If you checked any box under Standard Deduction, see instructions.

12 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . . . . . . 13 14 Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . 15

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2020)

TX 77082

33,000.

33,000. 65,772.

Stark

Stark

1000 Avengers Way

Houston

Your social security number

000-11-1111 Spouse’s social security number

000-22-2222

110,000.

123,887.

98,772.

3,400. 2,500.1,000.

11,000. -3,013.

25,115.

25,115.

Morgan Stark Daughter

Tony

Pepper

X

Includes sec. 1245 gain. See page 3.

Form 1040 (2020) Page 2 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16 17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17 18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . 18 19 Child tax credit or credit for other dependents . . . . . . . . . . . . . . . . 19 20 Amount from Schedule 3, line 7 . . . . . . . . . . . . . . . . . . . . 20 21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . 21 22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22 23 Other taxes, including self-employment tax, from Schedule 2, line 10 . . . . . . . . . 23 24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . a 24 25 Federal income tax withheld from:

a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b c Other forms (see instructions) . . . . . . . . . . . . . 25c d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . . 25d

26 2020 estimated tax payments and amount applied from 2019 return . . . . . . . . . . 26 27 Earned income credit (EIC) . . . . . . . . . . . . . .

• If you have a qualifying child, attach Sch. EIC.

• If you have nontaxable combat pay, see instructions.

27 28 Additional child tax credit. Attach Schedule 8812 . . . . . . . 28 29 American opportunity credit from Form 8863, line 8 . . . . . . . 29 30 Recovery rebate credit. See instructions . . . . . . . . . . 30 31 Amount from Schedule 3, line 13 . . . . . . . . . . . . 31 32 Add lines 27 through 31. These are your total other payments and refundable credits . . . a 32 33 Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . . . a 33

Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid . . 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . . a 35a

Direct deposit? See instructions.

a b Routing number a c Type: Checking Savings a d Account number 36 Amount of line 34 you want applied to your 2021 estimated tax . . a 36

Amount You Owe For details on how to pay, see instructions.

37 Subtract line 33 from line 24. This is the amount you owe now . . . . . . . . . . a 37

Note: Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details.

38 Estimated tax penalty (see instructions) . . . . . . . . . a 38

Third Party Designee

Do you want to allow another person to discuss this return with the IRS? See instructions . . . . . . . . . . . . . . . . . . . . a Yes. Complete below. No Designee’s name a

Phone no. a

Personal identification number (PIN) a

Sign Here

Joint return? See instructions. Keep a copy for your records.

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 complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) a

Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) a

Phone no. Email address

F

Paid Preparer Use Only

Preparer’s name Preparer’s signature Date PTIN Check if:

Self-employed

Firm’s name a Phone no.

Firm’s address a Firm’s EIN a

Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2020)

Self-Prepared

4,058. 230.

4,288.

X X X X X X X X X X X X X X X X X X X X X X X X X X

retired superhero

6,058.

6,058.

Homemaker

30,000.

30,000.

30,800. 26,512. 26,512.

800.

2,000.

2,000.

0.

BAA REV 03/06/21 TTMac

SCHEDULE 1 (Form 1040)

Department of the Treasury Internal Revenue Service

Additional Income and Adjustments to Income a Attach to Form 1040, 1040-SR, or 1040-NR.

a Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

2020 Attachment Sequence No. 01

Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number

Part I Additional Income

1 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . 1

2a Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a

b Date of original divorce or separation agreement (see instructions) a

3 Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . 3

4 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . 4

5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5

6 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . 6

7 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . 7

8 Other income. List type and amount a 8

9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Part II Adjustments to Income

10 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11 Certain business expenses of reservists, performing artists, and fee-basis government

officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . 11

12 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . 12

13 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . 13

14 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . 14

15 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . 15

16 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . 16

17 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . 17

18a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a

b Recipient’s SSN . . . . . . . . . . . . . . . . . . . . a

c Date of original divorce or separation agreement (see instructions) a

19 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

20 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . 20

21 Tuition and fees deduction. Attach Form 8917 . . . . . . . . . . . . . . . 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and

on Form 1040, 1040-SR, or 1040-NR, line 10a . . . . . . . . . . . . . . . 22 For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2020

Tony & Pepper Stark 000-11-1111

115.

1,627.

-3,013.

25,115.

25,000.

1,965.

-6,605.

000-11-1111

01/01/2009

BAA REV 03/06/21 TTMac

Ordinary gain in the form of depreciation recapture See p.5

Form 4797 Department of the Treasury Internal Revenue Service

Sales of Business Property (Also Involuntary Conversions and Recapture Amounts

Under Sections 179 and 280F(b)(2)) a Attach to your tax return.

a Go to www.irs.gov/Form4797 for instructions and the latest information.

OMB No. 1545-0184

2020 Attachment Sequence No. 27

Name(s) shown on return

1 Enter the gross proceeds from sales or exchanges reported to you for 2020 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions . . . . . . . . . . . 1

Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions)

2 (a) Description of property

(b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

(d) Gross sales price

(e) Depreciation allowed or

allowable since acquisition

(f) Cost or other basis, plus

improvements and expense of sale

(g) Gain or (loss) Subtract (f) from the

sum of (d) and (e)

3 Gain, if any, from Form 4684, line 39 . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Section 1231 gain from installment sales from Form 6252, line 26 or 37 . . . . . . . . . . . . . . 4 5 Section 1231 gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . . . . 5 6 Gain, if any, from line 32, from other than casualty or theft . . . . . . . . . . . . . . . . . 6 7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows . . . . . . . 7

Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120-S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.

Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn’t have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.

8 Nonrecaptured net section 1231 losses from prior years. See instructions . . . . . . . . . . . . . 8

9 Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions . . . . . . . . . . . . . . 9

Part II Ordinary Gains and Losses (see instructions) 10 Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less):

11 Loss, if any, from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ( ) 12 Gain, if any, from line 7 or amount from line 8, if applicable . . . . . . . . . . . . . . . . . 12 13 Gain, if any, from line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Net gain or (loss) from Form 4684, lines 31 and 38a . . . . . . . . . . . . . . . . . . . 14 15 Ordinary gain from installment sales from Form 6252, line 25 or 36 . . . . . . . . . . . . . . . 15 16 Ordinary gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . . . . . . . . 16 17 Combine lines 10 through 16 . . . . . . . . . . . . . . . . . . . . . . . . . . 17

18 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below.

a If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an employee.) Identify as from “Form 4797, line 18a.” See instructions . . . . . . . . . . . . . . . . 18a

b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 18b

For Paperwork Reduction Act Notice, see separate instructions. Form 4797 (2020)

Tony & Pepper Stark Identifying number

000-11-1111

0. 0.

1,965.

1,965.

1,965.

BAA REV 03/06/21 TTMac

Form 4797 (2020) Page 2 Part III Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255

(see instructions)

19 (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

A B C D

These columns relate to the properties on lines 19A through 19D. a Property A Property B Property C Property D

20 Gross sales price (Note: See line 1 before completing.) . 20 21 Cost or other basis plus expense of sale . . . . . 21 22 Depreciation (or depletion) allowed or allowable . . . 22 23 Adjusted basis. Subtract line 22 from line 21. . . . 23

24 Total gain. Subtract line 23 from line 20 . . . . . 24 25 If section 1245 property:

a Depreciation allowed or allowable from line 22 . . . 25a b Enter the smaller of line 24 or 25a. . . . . . . 25b

26 If section 1250 property: If straight line depreciation was used, enter -0- on line 26g, except for a corporation subject to section 291.

a Additional depreciation after 1975. See instructions . 26a

b Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. . . . . . . . 26b

c Subtract line 26a from line 24. If residential rental property or line 24 isn’t more than line 26a, skip lines 26d and 26e 26c

d Additional depreciation after 1969 and before 1976. . 26d e Enter the smaller of line 26c or 26d . . . . . . 26e f Section 291 amount (corporations only) . . . . . 26f g Add lines 26b, 26e, and 26f . . . . . . . . 26g

27 If section 1252 property: Skip this section if you didn’t dispose of farmland or if this form is being completed for a partnership.

a Soil, water, and land clearing expenses . . . . . 27a b Line 27a multiplied by applicable percentage. See instructions 27b c Enter the smaller of line 24 or 27b . . . . . . 27c

28 If section 1254 property:

a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions 28a

b Enter the smaller of line 24 or 28a. . . . . . . 28b 29 If section 1255 property:

a Applicable percentage of payments excluded from income under section 126. See instructions . . . . 29a

b Enter the smaller of line 24 or 29a. See instructions . 29b Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30.

30 Total gains for all properties. Add property columns A through D, line 24 . . . . . . . . . . . . . 30 31 Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13 . . . . . . 31

32 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line 6 . . . . . . . . . . . . . . . . . . . . 32

Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions)

(a) Section 179

(b) Section 280F(b)(2)

33 Section 179 expense deduction or depreciation allowable in prior years. . . . . . . . 33 34 Recomputed depreciation. See instructions . . . . . . . . . . . . . . . . 34 35 Recapture amount. Subtract line 34 from line 33. See the instructions for where to report . . 35

Form 4797 (2020)

0.

1,965. 1,965.

Vending Machine #1 04/01/2014 06/01/2020

2,500. 6,000. 5,465. 535.

1,965.

5,465. 1,965.

REV 03/06/21 TTMac

Orignal cost of vending machine Total Accumulated Tax Depreciation Taken

This is recapture of depreciation in the form of ordinary gain. Not capital gain!