Comprehensive Tax Return Problem: Harvey and Betty Duran, both 37, are married with on edependent child. Determine their taxable income from the following information for 2015, and their tax liabilty. Both the ABC and XYZ partnerships are passive activities. Assume dividends are taxed as ordinary income.

Harvey's salary - 45,000

Betty's salary- 62,000

Dividends from domestic corps- 11,000

Interest- 7000

Itemized Deductions- 6920

Net loss from ABC Partnership (acq 1983)- (14,200)

Net loss from XYZ Partnership (acq 1988)- (6,000)

Harvey's business income (moonlighting)- 7,700

Harvey's Business deductions (before home office expense)- 22,000

Harvey's home office expense- 10,500

Net loss on rental property- (31,000)

Federal income tax withheld- 9600