Question
Jane and Blair are married taxpayers filing jointly and have 2018 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 2018 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".
a. | $5,000 of gain from a capital asset held five years ___ | |
b. | $13,000 of gain from a capital asset held four years ___ | |
c. | $3,000 of qualified dividend income ___ | |
d. | $2,100 of gain from a capital asset held seven months ___ |
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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