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During $2024,$ your clients, Mr$.$ and Mrs$.$ Howell, owned the following investment assets:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr$.$ and Mrs$.$ Howell decided to sell most of their stocks and the mutual fund

in $2024$ and to reinvest in municipal bonds. The following investment assets were sold in $2024$:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

The Howells' broker issued them a Form $1099-$B showing the sales proceeds net of the commissions paid. For example,

the IBM sales proceeds were reported as $$14,000$ on the Form $1099-$B they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information

concerning $2024$:

The Howells received a consolidated Form $1099$ from the Vanguard mutual fund reporting a $$900$ long$-$term capital

gain distribution. This dividend was reinvested in $31$ additional Vanguard mutual fund shares on $6/30/2024.$

In $2018,$ Mrs$.$ Howell loaned $$6,400$ to a friend who was starting a new multilevel marketing company called LD$3.$ The

friend declared bankruptcy in $2024,$ and Mrs$.$ Howell has been notified she will not be receiving any repayment of the

loan.

The Howells have a $$2,700$ short$-$term capital loss carryover and a $$5,200$ long$-$term capital loss carryover from prior

years.

The Howells did not instruct their broker to sell any particular lot of IBM stock.

The Howells earned $$3,200$ in municipal bond interest, $$3,200$ in interest from corporate bonds, and $$4,400$ in

qualified dividends.

Assume the Howells have $$140,000$ of wage income during the year.

a$.$ Use Form $8949$ and page $1$ of Schedule D to compute net long$-$term and short$-$term capital gains. Then, compute the Howells' tax

liability for the year $($ignoring the alternative minimum tax and any phase$-$out provisions$)$ assuming they file a joint return, they have no

dependents, they don't make any special tax elections, and their itemized deductions total $$30,000.$ Assume that asset bases are

reported to the IRS. $($Use the tax rate schedules, Dividends and Capital Gains Tax Rates.$)$

Mr$.$ Howell social security number: $412-34-5670$

Note: Negative amounts should be indicated by a minus sign. Use $2024$ tax rules regardless of year on tax form.

Complete this question by entering your answers in the tabs below.

Form $8949$

Form $8949$

PG$1$

PG$2$

Schedule D

Compute the Howells' tax liability for the year.