Simon and Daphne Basset are married and wish to file a joint return for 2020. They have two dependent children, Amelia (age 17) and Belinda (age 12), who live with them. Their primary residence is in Phoenix, and they own a condo (2^nd home) in Flagstaff. They also own a rental house in Mesa. Simon and Daphne have the following items of income and expense for 2020:

Income:
Simon’s salary	$ 105,000
Daphne’s salary	110,000
Interest income on City of Phoenix bonds	7,500
Interest income on US Treasury bonds	13,000
Qualified cash dividends	10,000
Regular (ordinary) cash dividends	15,000
FMV of 50 shares of Danbury Co. common stock received as a stock dividend	7,500
Net rental income from 100% owned rental house*	8,500
Share of Feather Partnership loss**	(10,000)
Share of Bridger S Corporation income***	20,000
Life insurance proceeds received on the death of Simon’s father	100,000
Short-term capital gains	10,000
Short-term capital losses	(14,000)
15% Long-term capital gains	43,000
15% Long-term capital losses	(5,000)
Expenses:
Home mortgage interest ($400,000 principal)	24,000
Home equity loan interest ($110,000 principal)	6,600
Condo loan interest ($75,000 principal)	8,000
Car loan interest	6,000
Credit card finance charges	3,000
Home property taxes	6,000
Condo property taxes	5,000
Condo maintenance fees	2,500
Car tags (ad valorem part)	2,100
Arizona income tax withheld	8,000
Arizona sales tax estimate	7,000
Federal income taxes withheld	37,000
Medical insurance premiums (paid by the Bassets, not part of an employer plan)	10,000
Unreimbursed medical bills	8,000
Charitable contributions	11,000
Unreimbursed employee business expenses	7,500
Contributions to Traditional IRA plans	12,000

* The rental house does not meet the definition of a “qualified trade or business” for purposes of the §199A deduction.

** Simon and Daphne invested $15,000 as limited partners in the Feather Partnership at the beginning of 2020. The loss is not the result of real estate rentals. Neither materially participate in the operations of the partnership.

*** Daphne is a 75% owner and President of Bridger.

Determine Simon and Daphne’s tax liability, using the tax formula.