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Required informetion The following intormation applies to the questions displayed below] During 2023, your clients, Mr and Mrs Hovell, owned the following investment assets: "No commissions are charged When no-load mutual funds are bought and sold Because of the downtum in the stock market, Mr and Mrs. Howell decided to seli most of their stocks and the mutual fund in 2023 and to reinvest in municipal bonds. The following investmemt assets were soid in 2023 "No commissions are charged when no-lood mutual funds are bought and sold The Howelis broker issued them a Form 1099-B showing the soles proceeds net of the commissions paid. For example, the ibM soles proceeds were reported as $13.600 on the form 10998 they recelved In oddition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2023 - The Howelis recelved a form 1099 -B from the Vanguard mutual fund teporting a $900 long term copital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2023 - in 2017, Mrs Howell loaned \$6,000 to a friend who was starng a new multilevel marketng compony called ID3 The friphd declared bankruptcy in 2023 and Mrs. Howeil has been notifed she will not be recelvng ony repayment of the loan - The Howels have a $2300 short term capital loss carryover and a $4800 iong-term capat loss carryover fiom prior years - The Howelis did not instruct their broker to sell any parpcular lot of isM stock. - The Howelis eamed $3,000 in municipar bond interest. $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. - Asfume ne Howelis have $130,000 of wage income dunng the year 0. Use Form 8949 and page 1 of Schedule D to compute net long-term and short-term capltal gains. Then, compute the Howells' tax lability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tox elections, and their itemized deductions total $30,000 Assume that asset bases are teported to the IRS. (Use the tax rate schedules. Dlvidends and Coptal Gains Tax Rates) Mi. Howell social securty number: 412345670 Note: Negetlve emounts should be indlceted by e minus slgn. Use 2023 tox rules regardiess of year on tox form. Form 8949 Page 1 and 2. (1) Raquired intormatien Den inime ing deted ne you nol Complete this question by entering your answers in the tabs below. Compute the Howells' tax liability for the year. Form 8949 Schedule D. SCHEDULE D (Form 1040) Department of the Treakury Intema! Revenue Service (9g) Capital Gains and Losses - Autach so Form 1040, 1040-SR, or 1040.NR - Go to winu irs poviSchedule D for instructons and the istest intormation. - Use Form 8040 lo lat your vansactions for ines 10.2.2.86, 9. and 10. OMe No. 15450074 2022 Actachent Stavence No 12 Your social secunty number Did you dispose of any investment(s) in a qualfied opportunity fund during the tax year? Yes No II "Yes," attach Form 8949 and see its instructions for addibional requirements for reporting your gain or loss Complete this question by entering your answers in the tabs below. Compute the Howells' tax liability for the year: Form 8949 Page 1 and 2. Ramteag 9as: Attachment Sequence No 12A Page 2 F boler and mar even tell you which bar to check. Form 8949 , page 2, for the same box checked as you need. (D) Long-term transactions reported on Form(s) 1099.8 showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-8 showing basis wasn I teported to the IRS. (F) Long-term transactions not reported to you on Fom 1099. B Required Information [The following information applies to the questions displayed below] During 2023, your clients, Mr. and Mrs. Howell, owned the following investment assets: "No commissions are charged when no-load mutual funds are bought and sold Because of the downturn in the stock market, Mr and Mrs. Howell decided to sell most of thelr stocks and the mutual fund in 2023 and to relnvest in municipal bonds. The following investment assets were sold in 2023 . "No commissions are charged when no-load mutual funds are bought and sold The Howells' broker issued them a Form 1099-8 showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they recelved In addition to the sales reflected in the table above, the Howelis provided you with the following additional information concerning 2023 . - The Howells recelved a Form 10998 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2023. - In 2017, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3 The friend deciared bankruptcy in 2023, and Mrs. Howell has been notied she will not be recelving any repayment of the loan - The Howells have a $2,300 short-term capital loss carryover and a $4,800 long-term capital loss carryover from prior years. - The Howells did not instruct thelr broker to sell any particular lot of IBM stock. - The Howells earned $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends - Assume the Howells have $130,000 of wage income during the year. Complete this question by entering your answers in the tabs below. Form 8949 Page 1 and 2. (1) Rogulied intormation \begin{tabular}{|c|c|c|c|} \hline Fomes:9PG: & Fom 8949 & scheale D & Alequired A \\ \hline \end{tabular} Form a949 Schedule D. SCHEDULE D (Form 1040) Capital Gains and Losses \&-Fern ases pea meques
