Demarco and Janine Jackson have been mamed for 20 years and have four children (no children under age 6 at yearend) who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The couple recelved salary income of $100,000 and qualified business income of $15,000 from an investment in a partnership, and they sold their home this year. They inmally purchased the home three years ago for $225,000 and they sold it for $275,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $17,500 of itemized deductions (no chartiable contributions), and they had $4.000 with held from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may clatm a child tax credit for other qualifyng dependents for Candice, (Use the tax rate schedules) Required: c. What would their taxable income be if thetr itemized deductions totaled $29,000 instead of $17,500 ? d. What would their taxable income be if they had $0 ltemized deductions and $8,000 of for AGt deductions? e. Assume the onginal focts but now suppose the Jocksons also incurred a loss of $5,500 on the sale of some of their investment assets. What effect does the $5,500 loss have on their taxable incomer? f. Assume the onginal facts but now suppose the Jacksons own imestrients thot apprecated by Si0.000 during the year. The Jacksons betieve the investments wili continue to oppreclate. so they did not seil the investments during thus year. What is the Jocksons' tavoble income? Jacksons' taxable income? What would their taxable income be if their itemized deductions totaled $29,000 instead of $17,500 ? What would their taxable income be if they had $0 itemized deductions and $8,000 of for A d. What would their taxable income be if they had $0 itemized deductions and $8,000 of for AG deductions? e. Assume the onginal facts but now suppose the Jacksons also incurred a loss of $5,500 on the sale of some of their inves assets. What effect does the $5,500 loss have on their taxable income? 1. Assume the original facts but now shopose the Jacksons own investments that appreclated by $10,000 during the year. Th Jacksons belleve the investments will continue to appreclate, so they did not sell the investments during this year. What is thi Jacksons' taxable income? Assume the original facts but now suppose the Jacksons also incurred a loss of $5,500 on the sale of some of their investment assetar. What effect does the 55,500 loss have on their taxable income? d. What would their taxable income be if they had $0 itemized deductions and $8,000 of for AGl deductions? e. Assume the original facts but now suppose the Jacksons also Incurred a loss of $5,500 on the sale of some of their investm assets. What effect does the $5,500 loss have on thetr taxable income? t. Assume the original facts but now suppose the Jacksons own investments that appreclated 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? Assume the original facts but now suppose the lacksons own investments that appreciated by 410 , 000 during the yasa The Jacksons believe the invertments will continue to appreciate, so they did not sell the investments during this year. What is the lacksons' taxable income
