Kevin and Erica, both age 35, are married. They have a 1 year old son named...

 

Transcribed Image Text:

Kevin and Erica, both age 35, are married. They have a 1 year old son named Kenzo and a 2 year old daughter named Heaven together. Kevin is the sole proprietor of a business that had net operating income of $200,000 and net capital losses from stock of $2,000. Aside from his business, Kevin also had gains of $1,000 from stocks that he owns with Erica. Erica is a stay-at-home mom. In the current year, Kevin and Erica sold their only home, in which they lived in for the past 20 months, for $750,000. The cost of the home was $500,000. Assume no other events took place. What is the tax liability for Kevin and Erica in this situation? (10 points) Kevin and Erica, both age 35, are married. They have a 1 year old son named Kenzo and a 2 year old daughter named Heaven together. Kevin is the sole proprietor of a business that had net operating income of $200,000 and net capital losses from stock of $2,000. Aside from his business, Kevin also had gains of $1,000 from stocks that he owns with Erica. Erica is a stay-at-home mom. In the current year, Kevin and Erica sold their only home, in which they lived in for the past 20 months, for $750,000. The cost of the home was $500,000. Assume no other events took place. What is the tax liability for Kevin and Erica in this situation? (10 points)