In 2023, Tom and Alejandro Jackson (married filing jointly) have $264,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.)

1. On May 12, 2023, they sold a painting (art) for $118,000 that was inherited from Grandma on July 23, 2021. The fair market value on the date of Grandma's death was $94,000, and Grandma's adjusted basis of the painting was $26,600.
2. They applied a long-term capital loss carryover from 2022 of $10,800.
3. They recognized a $12,400 loss on the 11/1/2023 sale of bonds (acquired on 5/12/2013).
4. They recognized a $4,480 gain on the 12/12/2023 sale of IBM stock (NYSE: IBM) (acquired on 2/5/2023).
5. They recognized a $18,920 gain on the 10/17/2023 sale of rental property (the only 1231 transaction), of which $9,280 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,640 is subject to the 0, 15, or 20 percent maximum rates (the property was acquired on 8/2/2017).
6. They recognized a $12,800 loss on the 12/20/2023 sale of bonds (acquired on 1/18/2023).
7. They recognized a $7,400 gain on the 6/27/2023 sale of BH stock (acquired on 7/30/2014).
8. They recognized an $11,800 loss on the 6/13/2023 sale of QuikCo stock (acquired on 3/20/2016).
9. They received $820 of qualified dividends on 7/15/2023.

Complete the required capital gains netting procedures and calculate the Jacksons' 2023 tax liability.