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Demarco and Janine Jackson have been married for 2 0 years and have four children ( no children under age 6 at year - end
Demarco and Janine Jackson have been married for years and have four children no children under age at yearend who qualify as their dependents Damarcus Jasmine, Michael, and Candice The couple received salary income of $ and qualified business income of $ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $ and they sold it for $ The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $ of itemized deductions, and they had $ 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 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 $ instead of $
d What would their taxable income be if they had $ itemized deductions and $ of for AGI deductions?
e Assume the original facts but now suppose the Jacksons also incurred a loss of $ on the sale of some of their investment assets. What effect does the $ loss have on their taxable income?
f Assume the original facts but now suppose the Jacksons own investments that appreciated by $ 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? Tax Rate
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