INSTRUCTIONS: Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2019 taxable year. Note that all gain realized on the sale of the rental property is 25-percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits Married Filing Jointly 344,750 None None 24,400 None None SALES DATA Adjusted Basis Amount Realized Date Date Description Purchased Sold Stock A 6/1/2018 1/2/2019 Stock B 1/15/2015 11/30/2019 Stock C 2/1/2019 6/15/2019 Stock D 7/14/2011 9/5/2019 Antiques 3/1/1993 7/1/2019 Rental property 8/15/2009 4/22/2019 1 - All gain realized on sale of rental property is 25% rate gain 7,500 9,000 5,200 7,500 20,000 110,000 11,000 401,200 2,700 2,500 19,000 119,000 INSTRUCTIONS: Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2019 taxable year. Note that all gain realized on the sale of the rental property is 25-percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions Itemized deductions Standard deduction QBID Tax credits Married Filing Jointly 344,750 None None 24,400 None None SALES DATA Adjusted Basis Amount Realized Date Date Description Purchased Sold Stock A 6/1/2018 1/2/2019 Stock B 1/15/2015 11/30/2019 Stock C 2/1/2019 6/15/2019 Stock D 7/14/2011 9/5/2019 Antiques 3/1/1993 7/1/2019 Rental property 8/15/2009 4/22/2019 1 - All gain realized on sale of rental property is 25% rate gain 7,500 9,000 5,200 7,500 20,000 110,000 11,000 401,200 2,700 2,500 19,000 119,000