Mr. and Mrs. Bismark file a joint return and have taxable income of $430,000 without considering the following independent fact situations.

QUESTIONS:

Determine the increase in their tax liability when:

a. They have a short term capital gain of $29,000 and a long term capital loss of $18,000

b. They have a long term capital gain of $24,000 due to the sale of a collectible and a long term capital gain of $14,000 due to the sale of General Motors Stock

c. Same as part b except they also have a short term capital loss of $5,100

i Reference long-term capital loss Married, Filing Joint and Surviving Spot If taxable income is: The tax is: Not over $19,400 ........... 10% of taxable income. Over $19,400 but not over $78,950 ..... $1,940.00 + 12% of the excess over $19,400. Over $78,950 but not over $168,400 .... $9,086.00 + 22% of the excess over $78,950. Over $168,400 but not over $321,450 ... $28,765.00 +24% of the excess over $168,400. Over $321,450 but not over $408,200 ... $65,497.00 + 32% of the excess over $321,450. Over $408,200 but not over $612,350 ... $93,257,00 + 35% of the excess over $408,200. Over $612,350 .....................$164,709.50 +37% of the excess over $612,350. Print Done i Reference Capital Gains and Dividends long-term capital loss Capital gains and losses are assigned to baskets. Five possible tax rates will appl losses: Ordinary income tax rates (up to 37% in 2019) for gains on assets held one year ur less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: Preferencial Single Filing Jointly Head of Household Rate 0% Up to $39,375 Up to $78,750 Up to $52,750 15% > $39,375 but not over $434,550 $78,750 but not over $488,850 > $52,750 but not over $461,700 Over $434,550 Over $488,850 Over $461,700 20% * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $39,375 if married filing separately. Print Done i Reference long-term capital loss Married, Filing Joint and Surviving Spot If taxable income is: The tax is: Not over $19,400 ........... 10% of taxable income. Over $19,400 but not over $78,950 ..... $1,940.00 + 12% of the excess over $19,400. Over $78,950 but not over $168,400 .... $9,086.00 + 22% of the excess over $78,950. Over $168,400 but not over $321,450 ... $28,765.00 +24% of the excess over $168,400. Over $321,450 but not over $408,200 ... $65,497.00 + 32% of the excess over $321,450. Over $408,200 but not over $612,350 ... $93,257,00 + 35% of the excess over $408,200. Over $612,350 .....................$164,709.50 +37% of the excess over $612,350. Print Done i Reference Capital Gains and Dividends long-term capital loss Capital gains and losses are assigned to baskets. Five possible tax rates will appl losses: Ordinary income tax rates (up to 37% in 2019) for gains on assets held one year ur less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: Preferencial Single Filing Jointly Head of Household Rate 0% Up to $39,375 Up to $78,750 Up to $52,750 15% > $39,375 but not over $434,550 $78,750 but not over $488,850 > $52,750 but not over $461,700 Over $434,550 Over $488,850 Over $461,700 20% * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $39,375 if married filing separately. Print Done