Justin Macdonald is married to Janine MacDonald. Justin owns a business and maintains a variety of investments. Janine is a CFO for a mid-size company. Below, are their realization transactions for 2019 are presented.

• Justin sold his investment in ACME Co. for $25,000. He originally invested $165,000 in the company that qualified as a Sec. 1244 company. He purchased the stock in 2008 and sold it in 2019.
• Justin sold his investment in Xerox that he bought on June 18,2019 for $5,800 for $12,325 on November 15,2019.
• On 2/1/19 Justin sold an office building and purchased a new one (shown above). Justin received $195,000 cash and the buyers assumed the remaining $60,000 loan on the building. He originally purchased the building for $100,000 in 2009. As of the date of sale, he had taken $25,000 of tax depreciation. He also paid the real estate agent 6% of the sales price as a commission. (Hint the commission was paid on the total sales price).
• On 1/15/19, Justin sold his old computer system. He was paid $6,500 for the computer. Justin originally purchased the computer in 2017 for $20,500 and was able to fully depreciate the asset in the year of acquisition because of bonus depreciation and Section 179.
• On 3/15/19 Justin and Janine sold their home that they used as their principal residence for 10 years without interruption. They sold the home for $755,000. They originally purchased the home for $175,000 in 2009
• On 8/4/19 Justin sold his complete ownership in Yahoo Inc. He bought the stock for $10,350 in 2005 and sold it for $38,000.
• In May 2019, Justin sold stock in JAK Inc. for $40,000. He acquired this stock from his sister. His tax basis in the stock was $30,000. However, his sister sold it to them at a loss of $16,500.
• Justin has not had any Sec. 1231 transactions in the last 5 years.

In addition to the aforementioned items, Justin and Janine have the following additional information for 2019

Salary Justin $130,000

Salary Janine $475,000

Interest Income from banks $30,000

Qualifying Dividend Income $18,200

Annuity Payment (originally invested $80K, payout 400K) $30,000

Sole Proprietorship Net Income - Justin $92,000 Eligible for 199A

Partnership Income (active) Janine $112,000 Eligible for 199A

S Corporation Income $45,000 Eligible for 199A

SEP Contributions $45,000

Self-Employed Medical Insurance $15,000

Mortgage Interest (Outstanding Principal $1,250,000 $31,000 (Home acquired in 2015)

Property Taxes $16,500

Charitable Contributions $82,000

Investment Interest Expense $57,000

Income Tax Withheld $250,000

Required

1. Create a schedule of all 2019 sales and exchanges of property transactions and label them accordingly (e.g., Sec. 1231 gains/losses, Long-term capital, Sec. 1245 recapture, etc.).
2. Compute the 2019 Self Employment Tax for Justin and Janine.
3. Compute the 2019 Adjusted Gross Income for Justin and Janine
4. Calculate the 2019 Itemized Deductions for Justin and Janine
5. Calculate 2019 Taxable Income (after QBI Deduction), Total Income Tax, Total Net Investment Income tax, Additional Medicare Tax, Total Tax Liability and any tax due or refund for the MacDonalds