Stephanie and Matt are married with no children. In 2021, they have a total gross income of
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- Stephanie and Matt are married with no children. In 2021, they have a total gross income of $140,000. Their allowable deductions for adjusted gross income total $6,000, and they have $16,000 of allowable itemized deductions. Compute Stephanie and Matt's 2021 taxable income and 2021 income tax liability.
- Assume that in addition to the information given above, Stephanie sold some land that she had held as an investment at a gain of $5,000. What is the effect of the gain on their taxable income and income tax liability? You do not need to recalculate; just explain the general effect of the sale of the land.
- Assume the same facts as in part (a) and that Matt also sold some stock he purchased several years ago at a $12,000 loss. What is the effect of the gain on the land and the loss on the stock on their taxable income? Explain.
- 2021 Married Tax return table:
- If taxable income is over But Not over The tax Due is: Of the amount over $ 0 $19,900 10% $0 $ 19,900 $81,050 $1,990+12% $19,900
- $81,050 $172,750 $9,328+22% $81,050
- $172,750. $329,850 $29,502+24%. $172,750
Related Book For
Principles of Taxation for Business and Investment Planning 2019 Edition
ISBN: 9781260161472
22nd edition
Authors: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
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