Question
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
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 | < 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). Ron began business four years ago and has sold 1231 assets with $5,000 of losses within the last five years. Ron owned each of the assets below for several years. In the current year, Ron sold the following business assets:
Given that Ron and Anne have W-2 income of $224,400 and qualified dividend income of $30,000 before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return? Prepare Form 1040, Schedule D, Schedule D worksheet, Form 4797 and any other forms required.
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