Problem 7-49 (LO 7-2) (Algo) In 2021, Tom and Amanda Jackson (married filing jointly) have $260,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) a. On May 12, 2021, they sold a painting (art) for $117,500 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandma's death was $93,750 and Grandma's adjusted basis of the painting was $26,500. b. They applied a long-term capital loss carryover from 2020 of $10,750. c. They recognized a $12,375 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011). d. They recognized a $4,450 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021). e. They recognized a $18,800 gain on the 10/17/2021 sale of rental property (the only $1231 transaction), of which $9,200 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,600 is subject to the O/15/20 percent maximum rates (the property was acquired on 8/2/2015). f. They recognized a $12,750 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021). g. They recognized a $7,375 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012). h. They recognized an $11,750 loss on the 6/13/2021 sale of Quik Co stock (acquired on 3/20/2014). i. They received $800 of qualified dividends on 7/15/2021. After completing the required capital gains netting procedures, what will be the Jacksons' 2021 tax liability? Total tax liability 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 Tax Rates for Net Capital Gains and Qualified Dividends Taxable income Rate* Head of Household Trusts and Estates 0% Married Filing Jointly $0 - $80,800 $80,801 - $501,600 $501,601+ Married Filing Separately $0 - $40,400 $40,401 - $250,800 $250,801+ Single $0 - $40,400 $40,401 - $445,850 $445,851+ 15% $0 - $54,100 $54,101 - $473,750 $473,751+ $0 - $2,700 $2,701 - $13,250 $13,251 + 20%