During $2024,$ your clients, Mr$.$ and Mrs$.$ Howell, owned the following investment assets:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr$.$ and Mrs$.$ Howell decided to sell most of their stocks and the mutual fund

in $2024$ and to reinvest in municipal bonds. The following investment assets were sold in $2024$:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

The Howells' broker issued them a Form $1099-$B showing the sales proceeds net of the commissions paid. For example,

the IBM sales proceeds were reported as $$13,600$ on the Form $1099-$B they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information

concerning $2024$:

The Howells received a consolidated Form $1099$ from the Vanguard mutual fund reporting a $$900$ long$-$term capital

gain distribution. This dividend was reinvested in $31$ additional Vanguard mutual fund shares on $6/30/2024.$

In $2018,$ Mrs$.$ Howell loaned $$6,000$ to a friend who was starting a new multilevel marketing company called LD$3.$ The

friend declared bankruptcy in $2024,$ and Mrs$.$ Howell has been notified she will not be receiving any repayment of the

Ioan.

The Howells have a $$2,300$ short$-$term capital loss carryover and a $$4,800$ long$-$term capital loss carryover from prior

years.During $2024,$ your clients, Mr$.$ and Mrs$.$ Howell, owned the following investment assets:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr$.$ and Mrs$.$ Howell decided to sell most of their stocks and the mutual fund

in $2024$ and to reinvest in municipal bonds. The following investment assets were sold in $2024$:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

The Howells' broker issued them a Form $1099-$B showing the sales proceeds net of the commissions paid. For example,

the IBM sales proceeds were reported as $$13,600$ on the Form $1099-$B they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning $2024$:

The Howells received a consolidated Form $1099$ from the Vanguard mutual fund reporting a $$900$ long$-$term capital gain distribution. This dividend was reinvested in $31$ additional Vanguard mutual fund shares on $6/30/2024.$

In $2018,$ Mrs$.$ Howell loaned $$6,000$ to a friend who was starting a new multilevel marketing company called LD$3.$ The friend declared bankruptcy in $2024,$ and Mrs$.$ Howell has been notified she will not be receiving any repayment of the loan.

The Howells have a $$2,300$ short$-$term capital loss carryover and a $$4,800$ long$-$term capital loss carryover from prior years.

The Howells did not instruct their broker to sell any particular lot of IBM stock.

The Howells earned $$3,000$ in municipal bond interest, $$3,000$ in interest from corporate bonds, and $$4,000$ in qualified dividends.

Assume the Howells have $$130,000$ of wage income during the year.

Use Form $8949$ and page $1$ of Schedule D to compute net long$-$term and short$-$term capital gains. Then, compute the Howells' tax liability for the year $($ignoring the alternative minimum tax and any phase$-$out provisions$)$ assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $$30,000.$ Assume that asset bases are reported to the IRS.Tax Rates for Net Capital Gains and Qualified Dividends

$\backslash$table$[[,$Taxable Income$],[$Rate $^(*),$Married Filing Jointly,Married Filing Separately,Single,Head of Household,Trusts and Estates$],[0\%,$$$0-$$$94,050,$$$0-$$$47,025,$$$0-$$$47,025,$$$0-$$$63,000,$$$0-$$$3,150],[15\%,$$$94,051-$$$583,750,$$$47,026-$$$291,850,$$$47,026-$$$518,900,$$$63,001-$$$551,350,$$$3,151-$$$15,450],[20\%,$$$583,751+,$$$291,851+,$$$518,901+,$$$551,351+,$$$15,451+]]$

for this purpose$).$