During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)

Capital Asset	Market Value		Tax Basis		Holding Period
L stock	$	50,000	$	41,000	> 1 year
M stock		28,000		39,000	> 1 year
N stock		30,000		22,000	< 1 year
O stock		26,000		33,000	< 1 year
Antiques		7,000		4,000	> 1 year
Rental home		300,000*		90,000	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).

Ignore the Net Investment Income Tax.

Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2018 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)

 

Here are the dividend and capital gains brackets for 2018: Qualified Dividend & Cap Single Filers Head of Joint Filers Household Gain Tax Rate 0% $0 - $0 - $0 - $51,700 $38,600 $77,200 15% $38,601 - $77,201 - $51,701 - $425,800 $479,000 $452,400 20% > $425,800 > $479,000 > $452,400