Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents

(Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of

$99,500 and qualified business income of $15.500 from an investment in a partnership, and they sold their home this

year. They initially purchased the home three years ago for $227,500 and they sold it for $277,500. The gain on the sale

qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $17.600 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 $29.100 instead of $17,600?

d. What would their taxable income be if they had $0 itemized deductions and $8.200 of for AGI deductions?

e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,550 on the sale of some of their investment assets. What effect does the $5.550 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?

Assume the original facts but now suppose the Jacksons also incurred a loss of $5,550 on the sale of some of their investment assets. What effect does the $5,550 loss have on their taxable income? What would their taxable income be if they had $0 itemized deductions and $8,200 of for AGI deductions? Assume the original facts but now suppose the Jacksons also incurred a loss of $5,550 on the sale of some of their investment assets. What effect does the $5,550 loss have on their taxable income? What would their taxable income be if they had $0 itemized deductions and $8,200 of for AGI deductions