Question
Bill and Melinda, husband and wife, file separate federal tax returns in 2019. The couple lives in Washington state the entire year. Bills salary is
Bill and Melinda, husband and wife, file separate federal tax returns in 2019. The couple lives in Washington state the entire year. Bills salary is $900,000 and Melindas salary is $350,000. Melinda receives dividend income of $64,000 from stock that she inherited from her parents. Bill receives dividend income of $540,000 from stock that he purchased before marriage and that he holds as his separate property. The couple also received dividend income of $890,000 from stock that they purchased jointly after marriage. Show the income that each spouse must report on their separate returns for 2019.
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