In 2021, Jeff and Kim Jenson (married filing a joint return) have $300,000 of taxable income before considering the following transactions: On March 2, 2021, they sold a painting (art) for $100,000 that was inherited from Grandma on January 23, 2021. The FMV on the date of Grandma's death was $90,000 and Grandma's adjusted basis in the painting was $25,000; A $12,000 loss on 11/1/21 sale of bonds (acquired on 5/12/13); A $4,000 gain on 12/12/21 sale of IBM stock (acquired on 2/5/21); A $20,000 gain on the 10/17/21 sale of rental property. Of the $20,000 gain, $11,000 is reportable as gain subject to the 25% maximum rate and the remaining $9,000 is subject to the 15% maximum rate (the property was acquired on 8/2/16); A $12,000 loss on 12/20/21 sale of bonds (acquired on 1/18/21); A $7,000 gain on 8/27/21 sale of BH stock (acquired on 7/30/16); and A $11,000 loss on 6/13/21 sale of QuikCo. Stock (acquired on 3/20/18).

Part 1: Calculate the Jensen's total short-term capital gain or loss from these transactions (before combining any columns in the netting process).

Part 2: Calculate the Jensen's total 28% gain from these transactions (before combining any columns in the netting process).

Part 3: : Assume the transactions above result in the following gains and losses in the capital gain/loss netting process. Calculate the tax liability on the net gain from these transactions.

Short-term Capital Gains/Losses	28% Gain	25% Gain	Long-term Capital Gains/Losses
8,000	15000	12,000	(12,000)
(20,000)			6,000
			10,000
			(11,000)

Answer rating: 100% (QA)

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