Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively....

3,100

The Byrds provide over half of the support of their two children, Cynthia (born January

25, 1992, Social Security number 123-45-6788) and John (born February 7,

1996, Social Security number 123-45-6786). Both children are full-time students and

live with the Byrds except when they are away at college. Cynthia earned $4,200

from a summer internship in 2016, and John earned $3,800 from a part-time job.

During 2016, the Byrds provided 60% of the total support of Bruce's widower

father, Sam Byrd (born March 6, 1940, Social Security number 123-45-6787). Sam

lived alone and covered the rest of his support with his Social Security benefits. Sam

died in November, and Bruce, the beneficiary of a policy on Sam's life, received life

insurance proceeds of $1,600,000 on December 28.

The Byrds had the following expenses relating to their personal residence during

2016:

Property taxes $5,000

Qualified interest on home mortgage 8,700

Repairs to roof 5,750

Utilities 4,100

Fire and theft insurance 1,900

The Byrds had the following medical expenses for 2016:

Medical insurance premiums $4,500

Doctor bill for Sam incurred in 2015 and not paid until 2016 7,600

Operation for Sam 8,500

Prescription medicines for Sam 900

Hospital expenses for Sam 3,500

Reimbursement from insurance company, received in 2016 3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed

toward his father's support.

Other relevant information follows:

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