Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live together in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2023 are as follows: Bonnie's salary $42,500 Jake's salary 26,000 Interest income (joint) 1,500 Rental loss from actively managed rental property (23,000) Jake's unreimbursed medical expenses 8,500 All other itemized deductions:* Bonnie Jake None subject to limitations 19,000 6,400 Determine whether Bonnie and Jake should file jointly or separately for 2023. Click here to access the tax rate schedule. Round the total tax to the nearest dollar. AGI Total itemized deductions Taxable income Tax Bonnie Jake Joint 43,250 19,000 $ 24,250 26,750 47,000 $ 12,894 30,375 13,856 16,625 2,720 X 1,614 X Should Bonnie and Jake file jointly or separately for 2023? Jointly Feedback Check My Work Subject to certain exceptions, all rental activities are to be treated as passive activities. A rental activity is c payments are received principally for the use of tangible (real or personal) property. Importantly, an activity activity is subject to the passive activity loss rules even if the taxpayer involved is a material participant.