USE 2019 TAX RATE SCHEDULE. Sample solution attached (different numbers, the sample solution is just to show how to do it but it is not the same numbers in the posted questioN)problem).

SAMPLE SOLUTION TAXPAYER INFORMATION Single 15.000 None Marital Status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits None None SALES DATA CHARACTER CHECK TOTALS Date Acuted Gain Description Date Purchased Sold Basis Amoun: Realized Holding Type (3.000) Stock A Stock B Stack C Stock D Antiques Rental property 1/1/2001 1/1/2001 1/2/2019 1/2/2019 1/1/2001 1/1/2001 15 12/31/2019 12/31/2019 12/31/2019 12/31/2019 12/31/2019 12/31/2019 3.000 10,000 2,000 3,000 1.000 50.000 1.000 60,000 1.000 1.000 1.000 50,000 (2000) 50 000 (1,000) (2.000) ST LT LT LT ST 48,000 LT NETTING 16 Description Short-Term 28-Percent Long-Term 25-Percent 0/15/20-percent (2.000) 50.000 (1,000) (2,000) Stock A Stock B Stock C Stock D Antiques Rental property Subtotal Neting: ST -> 28 ST 25 ST->0/15/20 Total (3,000) 48,000 3,000 (3,000) 45,000 - TAX FORMULA AND CHARACTER SUMMARY 15,000 INCOME Ordinary income Short-term capital gains (losses) Long-erm capital gains (losses) 28-percent 25 percent 0/15/20-percent 45,000 60,000 TOTAL INCOME DEDUCTIONS FOR AGI AGI 60.000 DEDUCTIONS FROM AGI: Standard deduction QBID (12,200) TOTAL DEDUCTIONS FROM AGI TAXABLE INCOME (12,200) 47,800 2,800 TAXABLE INCOME BY CHARACTER: Ordinary Net capital gain: 28 percent 25 percent 0/15/20-percent 45,000 47,800 TOTAL TAXABLE INCOME BY CHARACTER TAX 2.800 280.00 BASE Ordinary income 25-percent gain taxed at ordinary rates 28-percent gain taxed at ordinary rates 0/15/20-percent gain taxed at 0% 0/15/20-percent gain taxed at 15% 0/15/20-percent gain taxed at 20% 25-percent gain taxed at 25% 28 percent gain taxnd at 28% Federal income tax liability 36 575 8,425 1.263.75 47.800.00 General Instructions Using the taxpayer information provided, use the capital gain netting process and tax formula to determine the taxpayer's taxable income. Next, calculate the taxpayer's income tax liability. Presentation A sample solution has been provided, and I suggest that you format your submission similarly. If your solution is illegible, you will be awarded no points. Your solution must: 1. Present the netting of capital gains and losses 2. Present the taxpayer's taxable income by applying the tax formula 3. Present the calculation of the taxpayer's income tax liability in a way that allows me to see your work 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 173,000 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 18,000 11,000 200 22,000 20,000 65,000 4,000 22,000 1,200 16,000 30,000 77,000 1 - All gain realized on sale of rental property is 25% rate gain SAMPLE SOLUTION TAXPAYER INFORMATION Single 15.000 None Marital Status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits None None SALES DATA CHARACTER CHECK TOTALS Date Acuted Gain Description Date Purchased Sold Basis Amoun: Realized Holding Type (3.000) Stock A Stock B Stack C Stock D Antiques Rental property 1/1/2001 1/1/2001 1/2/2019 1/2/2019 1/1/2001 1/1/2001 15 12/31/2019 12/31/2019 12/31/2019 12/31/2019 12/31/2019 12/31/2019 3.000 10,000 2,000 3,000 1.000 50.000 1.000 60,000 1.000 1.000 1.000 50,000 (2000) 50 000 (1,000) (2.000) ST LT LT LT ST 48,000 LT NETTING 16 Description Short-Term 28-Percent Long-Term 25-Percent 0/15/20-percent (2.000) 50.000 (1,000) (2,000) Stock A Stock B Stock C Stock D Antiques Rental property Subtotal Neting: ST -> 28 ST 25 ST->0/15/20 Total (3,000) 48,000 3,000 (3,000) 45,000 - TAX FORMULA AND CHARACTER SUMMARY 15,000 INCOME Ordinary income Short-term capital gains (losses) Long-erm capital gains (losses) 28-percent 25 percent 0/15/20-percent 45,000 60,000 TOTAL INCOME DEDUCTIONS FOR AGI AGI 60.000 DEDUCTIONS FROM AGI: Standard deduction QBID (12,200) TOTAL DEDUCTIONS FROM AGI TAXABLE INCOME (12,200) 47,800 2,800 TAXABLE INCOME BY CHARACTER: Ordinary Net capital gain: 28 percent 25 percent 0/15/20-percent 45,000 47,800 TOTAL TAXABLE INCOME BY CHARACTER TAX 2.800 280.00 BASE Ordinary income 25-percent gain taxed at ordinary rates 28-percent gain taxed at ordinary rates 0/15/20-percent gain taxed at 0% 0/15/20-percent gain taxed at 15% 0/15/20-percent gain taxed at 20% 25-percent gain taxed at 25% 28 percent gain taxnd at 28% Federal income tax liability 36 575 8,425 1.263.75 47.800.00 General Instructions Using the taxpayer information provided, use the capital gain netting process and tax formula to determine the taxpayer's taxable income. Next, calculate the taxpayer's income tax liability. Presentation A sample solution has been provided, and I suggest that you format your submission similarly. If your solution is illegible, you will be awarded no points. Your solution must: 1. Present the netting of capital gains and losses 2. Present the taxpayer's taxable income by applying the tax formula 3. Present the calculation of the taxpayer's income tax liability in a way that allows me to see your work 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 173,000 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 18,000 11,000 200 22,000 20,000 65,000 4,000 22,000 1,200 16,000 30,000 77,000 1 - All gain realized on sale of rental property is 25% rate gain