Wayne is single and has no dependents. Without considering his $11,000 adjusted net capital gain (ANCG), his taxable income in 2013 is as follows:
AGI ................................................................. $250,000
Home mortgage interest ................... $22,100
State and local income taxes .............. 8,000
Charitable contributions ................... 7,000
Personal exemption ........................ 3,900 ........... 41,000
Taxable income .................................................... $209,000
a. What is Wayne's tax liability without the ANCG?
b. What is Wayne's tax liability with the ANCG?