Problem $11-55($LO$.3,8,11)$

Bonnie and Jake $($ages $35$ and $36,$ respectively$)$ are married with no dependents and live together in Montana

$($not a community property state$).$ Because Jake has large medical expenses, they seek your advice about

filing separately to save taxes. Their income and expenses for $2023$ are as follows:

Determine whether Bonnie and Jake should file jointly or separately for $2023.$

Click here to access the tax rate schedule.

Round the total tax to the nearest dollar.

Should Bonnie and Jake file jointly or separately for $2023?$

Jointly $$

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Subject to certain exceptions, all rental activities are to be treated as passive activities. A rental activity is c

payments are received principally for the use of tangible $($real or personal$)$ property. Importantly, an activit$)$

activity is subject to the passive activity loss rules even if the taxpayer involved is a material participant.