Mason Phillips, age 45, and his wife, Ruth, live at

Mason Phillips, age 45, and his wife, Ruth, live at 230 Wood Lane, Salt Lake City, UT 84101. Mason’s Social Security number is 111-11-1111. Ruth’s Social Security number is 123-45-6789. Mason and Ruth are cash basis taxpayers and had the following items for 2019:

• Salary of $140,000.

• Bad debt of $30,000 from uncollected rent.

• Collection of unpaid rent from a prior year of $6,000.

• Sale of § 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago.

• Rental income of $60,000 (property is managed by Mason and Ruth).

• Rental expenses of $33,000.

• Casualty loss on rental property of $10,000.

• Personal casualty loss (from one event) of $3,000; not in a Federally declared disaster area.

• Theft loss of $8,000 on a painting held for investment.

• Other itemized deductions of $21,000.

• Federal income tax withheld of $3,000.

Compute Mason and Ruth’s 2019 Federal income tax payable (or refund due).

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