question f

Tax Project #1 Spring 2021 Peter and Jane Johnson have been married for 15 years and have three children who qualify as their dependents (John, Sarah and Michael). The couple received salary income of 200,000, qualified business income of $20,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $300,000 and they sold it for $420,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $19,500 of itemized deductions and they had $12,050 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Michael is 18 years of age, the Johnsons may only claim the child tax credit for other qualifying dependents. we Me Dauneut veste DD.UUU LOSS Tave on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? Tax Project #1 Spring 2021 Peter and Jane Johnson have been married for 15 years and have three children who qualify as their dependents (John, Sarah and Michael). The couple received salary income of 200,000, qualified business income of $20,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $300,000 and they sold it for $420,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $19,500 of itemized deductions and they had $12,050 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Michael is 18 years of age, the Johnsons may only claim the child tax credit for other qualifying dependents. we Me Dauneut veste DD.UUU LOSS Tave on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income