During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains
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Question:
During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)
| Capital Asset | Market Value | Tax Basis | Holding Period | ||
| L stock | $ | 50,000 | $ | 41,000 | > 1 year |
| M stock | 28,000 | 39,000 | > 1 year | ||
| N stock | 30,000 | 22,000 | < 1 year | ||
| O stock | 26,000 | 33,000 | < 1 year | ||
| Antiques | 7,000 | 4,000 | > 1 year | ||
| Rental home | 300,000* | 90,000 | > 1 year | ||
*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).
Ignore the Net Investment Income Tax.
Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2018 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)
Expert Answer:
Related Book For 
Taxation of Individuals 2017
ISBN: 9781259548666
8th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
