Bill and Alice Savage, husband and wife and both age 42, have the following transactions during 2019:

a. They sold their old residence on January 28, 2019, for $380,000. The basis of their old residence, purchased in 2009, was $70,000. The selling expenses were $20,000. On May 17, 2019, they purchased and moved into another residence costing $150,000.

b. On April 28, 2019, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2014. Her mother gave Alice the stock on November 15, 2018, when the fair market value was $9,400.

c. On May 24, 2019, Bill sold for $21,000 stock inherited from his father. His father died on June 14, 2018, when the fair market value of the stock was $9,000. Bill’s father paid $7,000 for the stock in 2012.

d. On August 11, 2019, they sold a personal automobile for $8,000; basis of the automobile was $20,000 and it was purchased in 2016.

e. They had a carryover and other stock transactions as follows:

Bill had salary of $40,000 and Alice had salary of $28,000. They have no children.
They paid state income taxes of $6,200, sales tax of $400, federal income taxes of $15,000, and property taxes of $1,700. In addition, they contributed $16,000 to their church and paid $4,000 interest on their home mortgage.
Compute Bill and Alice’s taxable income for 2019.

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LTCL carryover from 2018 STCG LTCG ($7,000) $2,000 $3,500