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please answer part A and B. Answer part A with the forms it asks dor During 2022, your clients, Mr. and Mrs. Howell, owned the
please answer part A and B. Answer part A with the forms it asks dor
During 2022, 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 their stocks and mutual funds in 2022 and to reinvest in municipal bonds. The following investments were sold in 2022: "No commissions are charged when no load mutual funds are bought and sold. The Howell's broker issued them a Form 1099-B 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 received. In addition to the sales reflected in the information above, the Howell's provided you with the following additional information concerning 2022 : - The Howell's received a Form 1099-B 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 6/30/22. - In 2016, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2022, and Mrs. Howell has been notified that she will not be receiving any repayment of the loan. - The Howell's have a $2,300 short-term capital loss carryover and a $4,800 long-term capital loss carryover from prior years. - The Howell's did not instruct their broker to sell any particular lot of IBM stock. - The Howell's earned $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. - Assume the Howell's have $130,000 of wage income during the year. a. 8949 and Form 1040 Sched Ue D. Use For = most current version of Form compute net long-term and shorte D. Use Form 8949 and page 1 of Schedule D to though the brokerage firm may have reported everything correctly and no adjustments are necessary. Then, compute the Howell's tax liability 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 tax elections, and their itemized deductions total $30,000. Assume that asset bases are reported to the IRS. b. Are there any tax planning recommendations related to the stock sales that you should have shared with the Howell's before their decision to sell Step by Step Solution
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