In 2018, Tom and Amanda Jackson (married filing jointly) have $236,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.)

On May 12, 2018, they sold a painting (art) for $114,500 that was inherited from Grandma on July 23, 2016. The fair market value on the date of Grandmas death was $92,250 and Grandmas adjusted basis of the painting was $25,900.

They applied a long-term capital loss carryover from 2017 of $10,450.

They recognized a $12,225 loss on the 11/1/2018 sale of bonds (acquired on 5/12/2008).

They recognized a $4,270 gain on the 12/12/2018 sale of IBM stock (acquired on 2/5/2018).

They recognized a $18,080 gain on the 10/17/2018 sale of rental property (the only 1231 transaction) of which $8,720 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,360 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2012).

They recognized a $12,450 loss on the 12/20/2018 sale of bonds (acquired on 1/18/2018).

They recognized a $7,225 gain on the 6/27/2018 sale of BH stock (acquired on 7/30/2009).

They recognized an $11,450 loss on the 6/13/2018 sale of QuikCo stock (acquired on 3/20/2011).

They received $680 of qualified dividends on 7/15/2018. After completing the required capital gains netting procedures, what will be the Jacksons 2018 tax liability?

Schedule Y-1-Married Filing Jointly or Qualitying Widow(er) If taxable income is over: But not over: $ 19,050 77,400 $165,000 $315,000 $400,000 $600,000 The tax is: $ 19.050 77,400 $165,000 $315,000 $400,000 $600,000 10% of taxable income $1,905 plus 12% of the excess over $19,050 $3.907 plus 22% of the excess over S77.400 $28,179 plus 24% of the excess over $165,000 64,179 plus 32% of the excess over S3 15,000 $91,379 plus 35% of the excess over $400,000 $161,379 plus 37% of the excess over $600,000