Demarco and Janine Jackson have been married for $20$ years and have four children $($no children under age $6$ at year$-$end$)$ who qualify as their dependents $($Damarcus$,$ Jasmine, Michael, and Candice$).$ The couple received salary income of $$102,500$ and qualified business income of $$12,500$ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $$212,500$ and they sold it for $$262,500.$ The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$17,000$ of itemized deductions, and they had $$4,000$ withheld 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 claim a child tax credit for other qualifying dependents for Candice. $($Use the tax rate schedules.$)$

Required:

c$.$ What would their taxable income be if their itemized deductions totaled $$28,500$ instead of $$17,000?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$7,000$ of for AGI deductions?

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,250$ on the sale of some of their investment assets. What effect does the $$5,250$ 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? $2022$ Tax Rate Schedules

Individuals

Schedule X$-$Single

Schedule Y$-1-$Married Filing Jointly or Qualifying Widow$($er$)$

Schedule Z$-$Head of Household