Question
Based on 2020 tax law. Please disregard March 2021 Legislation and use 2020 Instructions. John and Mary are in their 50s, married, and have no
Based on 2020 tax law. Please disregard March 2021 Legislation and use 2020 Instructions.
John and Mary are in their 50s, married, and have no children. They have salaries of a total of $100,000 with 18,000 in Federal withholding. They have the following other items of note:
Interest from Bank of Texas 10,000
Qualifying dividends 3,000
Non-qualifying dividends 2,000
Sales of the following securities:
Stock: | Bought | Sold | Sales Price | Cost |
Blue | 01/01/85 | 02/01/20 | 3000 | 2000 |
Amber | 01/01/20 | 02/01/20 | 15000 | 14000 |
Green | 01/01/85 | 02/01/20 | 12000 | 8000 |
Red | 01/01/20 | 02/01/2002/01/19 | 3000 | 4000 |
Purple | 01/01/20 | 02/01/20 | 5000 | 2000 |
What are their net long term capital gains or losses?
What are their net short term capital gains or losses?
Compute their adjusted gross income.
Compute their taxable income.
Compute their tax due or refund.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started