a-2. Compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. (Use the tax rate schedules, Dividends and Cepital Gains Tax Rates.) Answer is complete but not entirely correct. During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: "No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: "No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099.8 showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $14,400 on the Form 1099-B they recelved. In oddition to the soles reflected in the table above, the Howells provided you with the following additional information concerning 2022: - The Howells recelved a Form 1099-8 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022. - In 2016, Mrs. Howell loaned $6,800 to a friend who was starting a new multilevel marketing company called LD3. The friend deciared bankruptcy in 2022, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. - The Howells have a $3,100 short-term capital loss carryover and a $5,600 long-term capital loss carryover from prior years. - The Howelis did not instruct their broker to sell any particular lot of IBM stock. - The Howells earned $3,400 in municipal bond interest, $3,400 in interest from corporate bonds, and $4,800 in qualifled dividends. - Assume the Howells have $150,000 of wage income during the year. Comprehensive Problem 07-63 Part a-2 (Algo) -2. Compute the Howell's' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they (ile a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. Use the lax rote schedules, Dividends and Capital Gains Tax Rates.) c. Assume the Howells' short-term capital loss carryover from prior years is $83,100 rather than $3,100 as indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carrled beyond 2022 to future tax years? Note: Leave no cells blank - be certain to enter " 0 " wherever required. a-2. Compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. (Use the tax rate schedules, Dividends and Cepital Gains Tax Rates.) Answer is complete but not entirely correct. During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: "No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022: "No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099.8 showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $14,400 on the Form 1099-B they recelved. In oddition to the soles reflected in the table above, the Howells provided you with the following additional information concerning 2022: - The Howells recelved a Form 1099-8 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022. - In 2016, Mrs. Howell loaned $6,800 to a friend who was starting a new multilevel marketing company called LD3. The friend deciared bankruptcy in 2022, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. - The Howells have a $3,100 short-term capital loss carryover and a $5,600 long-term capital loss carryover from prior years. - The Howelis did not instruct their broker to sell any particular lot of IBM stock. - The Howells earned $3,400 in municipal bond interest, $3,400 in interest from corporate bonds, and $4,800 in qualifled dividends. - Assume the Howells have $150,000 of wage income during the year. Comprehensive Problem 07-63 Part a-2 (Algo) -2. Compute the Howell's' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they (ile a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. Use the lax rote schedules, Dividends and Capital Gains Tax Rates.) c. Assume the Howells' short-term capital loss carryover from prior years is $83,100 rather than $3,100 as indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carrled beyond 2022 to future tax years? Note: Leave no cells blank - be certain to enter " 0 " wherever required
