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In 2021, Tom and Amanda Jackson (married filing jointly) have $224,000 of taxable income before considering the following events: (Use the dividends and capital gains
In 2021, Tom and Amanda Jackson (married filing jointly) have $224,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.)
- On May 12, 2021, they sold a painting (art) for $113,000 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandmas death was $91,500 and Grandmas adjusted basis of the painting was $25,600.
- They applied a long-term capital loss carryover from 2020 of $10,300.
- They recognized a $12,150 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011).
- They recognized a $4,180 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021).
- They recognized a $17,720 gain on the 10/17/2021 sale of rental property (the only 1231 transaction), of which $8,480 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,240 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2015).
- They recognized a $12,300 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021).
- They recognized a $7,150 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012).
- They recognized an $11,300 loss on the 6/13/2021 sale of QuikCo stock (acquired on 3/20/2014).
- They received $620 of qualified dividends on 7/15/2021. After completing the required capital gains netting procedures, what will be the Jacksons 2021 tax liability?
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