Question
Jane and Blair are married taxpayers filing jointly and have 2019 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital
Jane and Blair are married taxpayers filing jointly and have 2019 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital asset held five years, $2,100 of gain from a capital asset held seven months, and $13,000 of gain from a capital asset held four years. All of the capital assets were stock in publicly traded corporations. Jane and Blair also have qualified dividend income of $3,000.
Indicate whether the following items are subject to the alternative tax computation. Select "Yes" if subject to the alternative tax computation; otherwise select "No".
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What is the couples tax on taxable income and the related tax savings from the alternative tax computation (if any)?
The couple's tax on taxable income using the alternative tax calculations is $
The related tax savings from the alternative tax computation is $
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