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 Single 173,000 None None 12,200 None None SALES DATA Date Purchased Date Sold Adjusted Basis Description Amount Realized Stock A 6/1/2018 1/2/2019 Stock B 1/15/2016 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 18,000 11,000 200 22,000 20,000 65,000 4,000 22,000 1,200 16,000 30,000 77,000 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 Single 173,000 None None 12,200 None None SALES DATA Date Purchased Date Sold Adjusted Basis Description Amount Realized Stock A 6/1/2018 1/2/2019 Stock B 1/15/2016 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 18,000 11,000 200 22,000 20,000 65,000 4,000 22,000 1,200 16,000 30,000 77,000