During the current year, Ron and Anne sold the following assets:

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
O Stock	26,000	33,000
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 $400,000 (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?

Here are the dividend and capital gains brackets for 2018: Qualified Dividend & Cap Gain Tax Rate Single Filers Head of Household Joint Filers $0- $38,600 $77,200 $38,601 - $77,201- $51,701 $425,800 $479,000 $452,400 > $425,800 >$479,000 > $452,400 0% $0- $0 $51,700 15% 20% 2018 Tax Rate Schedules Schedule X-Bingle Scbedule Z-Head of Houschold If tasable income a over: But not over $ 9.525 38,700 $82,500 $157,500 200,000 500,000 The tax is If tasable income is over: But not oner The tax i: $ 9.525 5 38,700 82,500 $157.300 200,000 10% of taxable income $952.50 plus 12% of the excess over $9,525 S4453. 50 plus 22% od ta "toes over $38,700 $14,009.50 plus 24% of the excess over $82,500 552,08950 plus 32% of te emess over s 137,500 $45,609.50 plus 35% of the enows over $200,000 $150,609.50 plus 37% of the etoets ovet $500,000 $ 13,600 51,800 $ 82,500 $137.500 $200,000 13,600 51,800 $ 82.500 $157,500 10%ofta table income $1.360 plus 12% of the excess over $13,000 $3.944 plus 22% of the mess over $51,800 $12,698 plus 24% of the mess oner $32,500 530,098 plus 52% of the 09 over $157,500 $44296 plus 35% of the one sa 0.000 $149,298 plus37% of the etce" oer S500.000 $500,000 Schedule Y-1-Married Fhilting Joiatly or Qualitying Wio(r) Schedule Y-2-Married Hling Separately If tasxable income in over But not over The tax is Iftatable income in over But not over $ 9.325 S 38,700 82,500 $157.500 The tas 19.050 77,400 $165,000 5315,000 10% of taxable income $1,905 pla: 12% ofthe greets over $19,050 sa.907 plus 22% of the excess over $77,400 $28.179 plas 24% ofthe escess over $165,000 $64,179 ptas 32% of the ance" over $315,000 $91,379 plas 35% of the excess over $400,000 $161.379 ptas 37% of the encess over S600.000 S 9525 $38,700 82.500 157,500 10% of taxable income 5952.50 plus 12% of the mess over $9525 $4453.50 plus 22% of the etcess over $38,700 $14,059.50 plus 24% of the exces over S82.500 $32,009.50 plus 32% of tba oser $157,500 $45.009.50 plus 35% of the excess over $200,000 S30,589 50 plus 37% of the eocess over $300,000 19,050 77400 315,000 400,000 000,000 5300,000