d. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions? (use the same table as C)

e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?

f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons taxable income?

2018 Tax Rate Schedules Schedule X-Sinsle Schedule Z-Head of Houxehold If tarable income is overi But not over $ 9.325 $ 38,700 $82,500 $157,500 $200,000 $500,000 The tar If tasable income is over But not over S 13,600 51800 2,500 $151,500 $200,000 $500,000 The tax i $ 9.525 $ 38,700 5 82,500 5157,500 $200,000 10% of taxable ncome 9952.50 plus 12% of the excess over 30,525 $4,453.50 plus 22% of the euess over $38,700 $14,009.50 ptas 24% ce tha amass over $82,500 532,099 50 plus 32% of the emess over $157,500 $45,639.50 plus 35% of the excess over $200,000 $150,639.50 pla: 37% ce the ance" over $500,000 13,600 51,800 $ 82,500 157.300 10% of tatabla ncona $1.360 plus 12% ofthe excess over $13.600 $5,944 plus 22% of the excess over $51,800 $12,698 plus 24% of tho cosa" orar $82,500 $30,098 plus 32% of the greass orer S 157,500 $44,298 plus 35% ofthe excess ovet $200,000 $149,296 plus 37% ofthe "co" oner $500,000 Schednls Y-1-Marrind hing Jointty or Qualifying Widos(ar) Schedulo Y-2-Marriad Filing Saparataly If tarable income is over: The tax is But not over $19,050 77,400 If taxable income is over: But not over The tax i: S 19,050 5 77,400 $165,000 $315,000 $400,000 $600.000 10% of taille income 1,905 phas 12% of the axcas over $19.050 3.907 pm 22% of the anses over $77,400 $28.179 plus 24% of the ence" over $165,000 S64-179 ptas 32% of the ance" over $315,000 S91.379 ptas 35% of thaocess over $400,000 $161.379 plus 37% of the excess ovet S600.000 $ 9.525 S 38,700 $ 2,500 $157,500 $200,000 300,000 $ 9.525 $38,700 S 82.500 $157,500 10% of tuable income $952.50 plus 12% of tho cocess our $9,525 $4,45 3.50 plus 22% of the acess ow $38,700 $14.009.50 plus 24% of the eacess over $82.500 $32,009.50 plus 32% of the ance" oer $157,500 $45,689.50 plas 35% of the "cess over $200,000 S80.689.50 plut 37% of the excess over $300,000 $315,000 $400,000 $600,000 2018 Tax Rate Schedules Schedule X-Sinsle Schedule Z-Head of Houxehold If tarable income is overi But not over $ 9.325 $ 38,700 $82,500 $157,500 $200,000 $500,000 The tar If tasable income is over But not over S 13,600 51800 2,500 $151,500 $200,000 $500,000 The tax i $ 9.525 $ 38,700 5 82,500 5157,500 $200,000 10% of taxable ncome 9952.50 plus 12% of the excess over 30,525 $4,453.50 plus 22% of the euess over $38,700 $14,009.50 ptas 24% ce tha amass over $82,500 532,099 50 plus 32% of the emess over $157,500 $45,639.50 plus 35% of the excess over $200,000 $150,639.50 pla: 37% ce the ance" over $500,000 13,600 51,800 $ 82,500 157.300 10% of tatabla ncona $1.360 plus 12% ofthe excess over $13.600 $5,944 plus 22% of the excess over $51,800 $12,698 plus 24% of tho cosa" orar $82,500 $30,098 plus 32% of the greass orer S 157,500 $44,298 plus 35% ofthe excess ovet $200,000 $149,296 plus 37% ofthe "co" oner $500,000 Schednls Y-1-Marrind hing Jointty or Qualifying Widos(ar) Schedulo Y-2-Marriad Filing Saparataly If tarable income is over: The tax is But not over $19,050 77,400 If taxable income is over: But not over The tax i: S 19,050 5 77,400 $165,000 $315,000 $400,000 $600.000 10% of taille income 1,905 phas 12% of the axcas over $19.050 3.907 pm 22% of the anses over $77,400 $28.179 plus 24% of the ence" over $165,000 S64-179 ptas 32% of the ance" over $315,000 S91.379 ptas 35% of thaocess over $400,000 $161.379 plus 37% of the excess ovet S600.000 $ 9.525 S 38,700 $ 2,500 $157,500 $200,000 300,000 $ 9.525 $38,700 S 82.500 $157,500 10% of tuable income $952.50 plus 12% of tho cocess our $9,525 $4,45 3.50 plus 22% of the acess ow $38,700 $14.009.50 plus 24% of the eacess over $82.500 $32,009.50 plus 32% of the ance" oer $157,500 $45,689.50 plas 35% of the "cess over $200,000 S80.689.50 plut 37% of the excess over $300,000 $315,000 $400,000 $600,000