Required information

Skip to question

[The following information applies to the questions displayed below.]

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)

Capital Asset	Market Value	Tax Basis	Holding Period
L stock	$ 52,200	$ 42,100	> 1 year
M stock	30,200	41,200	> 1 year
N stock	32,200	23,100	< 1 year
O stock	28,200	35,200	< 1 year
Antiques	9,200	5,100	> 1 year
Rental home	302,200*	91,100	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).

Ignore the Net Investment Income Tax.

a. Given that Ron and Anne have taxable income of only $18,900 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?

b. Given that Ron and Anne have taxable income of $402,200 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?