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 $28,00039,000>1$ year

N stock $30,00022,000<1$ year

O stock $26,00033,000<1$ year

Antiques $7,0004,000>1$ 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.

a$.$ 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 $2023$ assuming they file a joint return?

b$.$ 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 $2023$ assuming they file a joint return?

Tax Rates for Net Capital Gains and Qualified Dividends

Rate$*$ Taxable Income

Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates

$0\%$ $$0-$ $$89,250$ $$0-$ $$44,625$ $$0-$ $$44,625$ $$0-$ $$59,750$ $$0-$ $$3,000$

$15\%$ $$89,251-$ $$553,850$ $$44,626-$ $$276,900$ $$44,626-$ $$492,300$ $$59,751-$ $$523,050$ $$3,001-$ $$14,650$

$20\%$ $$553,851+$ $$276,901+$ $$492,301+$ $$523,051+$ $$523,051+*$This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table $($net capital gains and qualified dividends are included in taxable income last for this purpose$).$

$2023$ Tax Rate Schedules

Individuals

Schedule X$-$Single

If taxable income is over: But not over: The tax is:

$ $0$ $ $11,00010\%$ of taxable income

$ $11,000$ $ $44,725$ $$1,100$ plus $12\%$ of the excess over $$11,000$

$ $44,725$ $ $95,375$ $$5,147$ plus $22\%$ of the excess over $$44,725$

$ $95,375$ $ $182,100$ $$16,290$ plus $24\%$ of the excess over $$95,375$

$ $182,100$ $ $231,250$ $$37,104$ plus $32\%$ of the excess over $$182,100$

$ $231,250$ $ $578,125$ $$52,832$ plus $35\%$ of the excess over $$231,250$

$ $578,125$ $$174,238\mathrm{.}25$ plus $37\%$ of the excess over $$578,125$

Schedule Y$-1-$Married Filing Jointly or Qualifying surviving spouse

If taxable income is over: But not over: The tax is:

$ $0$ $ $22,00010\%$ of taxable income

$ $22,000$ $ $89,450$ $$2,200$ plus $12\%$ of the excess over $$22,000$

$ $89,450$ $ $190,750$ $$10,294$ plus $22\%$ of the excess over $$89,450$

$ $190,750$ $ $364,200$ $$32,580$ plus $24\%$ of the excess over $$190,750$

$ $364,200$ $ $462,500$ $$74,208$ plus $32\%$ of the excess over $$364,200$

$ $462,500$ $ $693,750$ $$105,664$ plus $35\%$ of the excess over $$462,500$

$ $693,750$ $$186,601\mathrm{.}5$ plus $37\%$ of the excess over $$693,750$

Schedule Z$-$Head of Household

If taxable income is over: But not over: The tax is:

$ $0$ $ $15,70010\%$ of taxable income

$ $15,700$ $ $59,850$ $$1,570$ plus $12\%$ of the excess over $$15,700$

$ $59,850$ $ $95,350$ $$6,868$ plus $22\%$ of the excess over $$59,850$

$ $95,350$ $ $182,100$ $$14,678$ plus $24\%$ of the excess over $$95,350$

$ $182,100$ $ $231,250$ $$35,498$ plus $32\%$ of the excess over $$182,100$

$ $231,250$ $ $578,100$ $$51,226$ plus $35\%$ of the excess over $$231,250$

$ $578,100$ $$172,623\mathrm{.}5$ plus $37\%$ of the excess over $$578,100$

Schedule Y$-2-$Married Filing Separately

If taxable income is over: But not over: The tax is:

$ $0$ $ $11,00010\%$ of taxable income

$ $11,000$ $ $44,725$ $$1,100$ plus $12\%$ of the excess over $$11,000$

$ $44,725$ $ $95,375$ $$5,147$ plus $22\%$ of the excess over $$44,725$

$ $95,375$ $ $182,100$ $$16,290$ plus $24\%$ of the excess over $$95,375$

$ $182,100$ $ $231,250$ $$37,104$ plus $32\%$ of the excess over $$182,100$

$ $231,250$ $ $346,875$ $$52,832$ plus $35\%$ of the excess over $$231,250$

$ $346,875$ $$93,300\mathrm{.}75$ plus $37\%$ of the excess over $$346,875$