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 $72,200. Meg works part-time at the same university. She earns $31,800 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). (Use the tax rate schedules, Dividends, and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

Problem 7-45 Part-b (Algo)

b. What is the Comers tax liability for 2021 if they report the following capital gains and losses for the year?

Short-term capital gains	$ 1,000
Short-term capital losses	0
Long-term capital gains	25,000
Long-term capital losses	(22,500)

Tax Rates for Net Capital Gains and Qualified Dividends

Rate*	Taxable Income
	Married Filing Jointly	Married Filing Separately	Single	Head of Household	Trusts and Estates
0%	$0 - $80,800	$0 - $40,400	$0 - $40,400	$0 - $54,100	$0 - $2,700
15%	$80,801 - $501,600	$40,401 - $250,800	$40,401 - $445,850	$54,101 - $473,750	$2,701 - $13,250
20%	$501,601+	$250,801+	$445,851+	$473,751+	$13,251+

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,900	10% of taxable income
$ 19,900	$ 81,050	$1,990 plus 12% of the excess over $19,900
$ 81,050	$ 172,750	$9,328 plus 22% of the excess over $81,050
$ 172,750	$ 329,850	$29,502 plus 24% of the excess over $172,750
$ 329,850	$ 418,850	$67,206 plus 32% of the excess over $329,850
$ 418,850	$ 628,300	$95,686 plus 35% of the excess over $418,850
$ 628,300		$168,993.50 plus 37% of the excess over $628,300