INSTRUCTIONS: Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2019 taxable year. Note that all gain realized on the sale of the rental property is 25-percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits Single 94,300 None None 12,200 None None SALES DATA Date Purchased Date Sold Adjusted Basis Description Amount Realized Stock A Stock B Stock C Stock D Antiques Rental property 6/1/2018 1/15/2016 2/1/2019 7/14/2011 3/1/1993 8/15/2009 1/2/2019 11/30/2019 6/15/2019 9/5/2019 7/1/2019 4/22/2019 14,000 70,500 1,500 7,000 11,000 110,000 7,000 425,500 2,500 3,500 14,000 115,000 1 - All gain realized on sale of rental property is 25% rate gain INSTRUCTIONS: Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2019 taxable year. Note that all gain realized on the sale of the rental property is 25-percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits Single 94,300 None None 12,200 None None SALES DATA Date Purchased Date Sold Adjusted Basis Description Amount Realized Stock A Stock B Stock C Stock D Antiques Rental property 6/1/2018 1/15/2016 2/1/2019 7/14/2011 3/1/1993 8/15/2009 1/2/2019 11/30/2019 6/15/2019 9/5/2019 7/1/2019 4/22/2019 14,000 70,500 1,500 7,000 11,000 110,000 7,000 425,500 2,500 3,500 14,000 115,000 1 - All gain realized on sale of rental property is 25% rate gain