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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
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). 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 2016 assuming they file a joint return? PLEASE USE THE 2016 TAX RATE SCHEDULE and show work
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