Question
Capital Gains and Losses (LO. 5) Jason and Jill are married and have a six-year-old daughter. During the year, they sell one acre of land
Capital Gains and Losses (LO. 5)
Jason and Jill are married and have a six-year-old daughter. During the year, they sell one acre of land for $80,000. Three years ago, they paid $70,000 for two acres of land. Their other income and deductions are as follow
Jill's commissions $82,000
Jason's salary 46,000
Dividend income 5,000
Interest income 8,000
Short-term loss on sale of stock in Nippon Inc. (15,000)
Deductions for adjusted gross income 28,000
The standard deduction is $24,000 for married taxpayers filing jointly. The personal and dependency exemptions have been eliminated for 2018. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations to the nearest dollar.
Jason and Jill's taxable income is $________. The tax on their eligible dividends and capital gains is $_________ and total income tax liability is $_______ for the current year.
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