Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $63,750. Meg works part-time at the same university. She earns $31,050 a year. The couple does not itemize deductions. Other than salary, the Comers only other source of income is from the disposition of various capital assets (mostly stocks).

a. What is the Comers tax liability for 2018 if they report the following capital gains and losses for the year?

Short-term capital gains	$	9,010
Short-term capital losses		(2,010)
Long-term capital gains		15,010
Long-term capital losses		(6,010)

b. What is the Comers tax liability for 2018 if they report the following capital gains and losses for the year?

Short-term capital gains	$	1,500
Short-term capital losses		0
Long-term capital gains		13,020
Long-term capital losses		(10,010

2018 Tax Rate Schedules Schedule X-Single Schedule Z-Head of Household If tasable income is over: Bat not over: 9.525 38,700 S 82,500 $157,500 The tas is: If taxable income is over: But not over: $ 13,600 $51,800 5 82,500 $157,500 The tax i: 3 9.525 S 38,700 82,500 $157,500 10% of tuble-come $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% of the excess over S38.700 $14,089.50 plus 24% ofthe enats ow $32,500 $32,009.50 plus 32% of the excess ovet $157,500 $45.689.50 plus 35% ofthe excess over $200,000 $150,669.50 plus 37% of the smess over $500,000 $ 13,600 31.800 $ 82,500 157500 10% oftarable income $1,360 plus 12% of the e cess over $13,600 $5.944 pla 22% of the excess over $51.000 $12,696 plus 24% of the excess over $22,500 $30,696 plus 32% of the excess over $157,500 $44,298 plus 35% of the eaeest over S200.000 $149,296 plus 37% of the nets o er $500,000 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) Schedule Y-2-Married Filing Separately If taxable income is over: The tax is: But not over: 19,050 77,400 $165,000 315,000 Ir taxable income is over: But not over The tax is: 10%oftmable ncome $1905 plus 12% ofthe ence" over $19,050 $8.907 plus 22% of the excess over $77,400 $28,179 plus 24% of the greets over $165,000 ssa1 79 plus 32% afthe mess over $315,000 $91.379 plus 35% of the escess over $400,000 $161.579 plus 37% of the emets over S600000 $ 9525 38,700 82.500 $157500 9525 $ 38,700 $ 82.500 $157,500 10% oftarable income $952.50 plus 12% of the ence" over $9,525 $4.453.50 plus 22% of the excess over $38,700 $14,069 50 plus 24% of the acess over $82,500 $32,009.50 pts 32% of the "ce" onr $157,500 $45,689.50 plus 35% of the excess over $200,000 $80,689 50 plus 37% of the excess over $300,000 19,050 s 77,400 315,000 Here are the dividend and capital gains brackets for 2018: Qualified Dividend & Cap Gain Tax Rate Single Head of Household Joint Filers $0 $38,600$77,200 $38,601 $425,800 $479,000 $452,400 > $425,800 >$479,000 >$452,400 096 $0 $0- $51,700 15% $77,201 $51,701 20%