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Required information [ The following information appiles to the questions displayned beiow. ] During 2 0 2 3 , your clients, Mr . and Mrs

Required information
[The following information appiles to the questions displayned beiow.]
During 2023, your clients, Mr. and Mrs. Howrel, owned the following inwestment assets:
No commissions are charged when no-load mutual funds are bought and sold.
Because of the downturn in the stock market, Mc. and Mrs. Howell decided to sell most of their stocks and the mutual fund
in 2023 and to reinvest in municipal bonds. The following irwestment assets were sold in 2023:
*No commissions are charged when no-load mutual funds are bought and sold.
The Hawels' 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 $13,800 on the Form 1099-B they received.
In addition to the sales reflected in the table above, the Howeils provided you with the following additional information
conceming 2023 :
The Howels recelved a Form 1099-8 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. Howel loaned $6,200 to a friend who was starting a new multilevel marketing compary called LD3. The
friend declared bankruptcy in 2023, and Mrs. Hawell has been notified she will nat be receiving any repayment of the
loan.
The Howels have a $2,500 short term capital loss carryover and a $5,000 long-term capital loss carryover from prior
years.
The Howels did nat instruct their broker to sell ary particular lot of IBM stack.
The Howels camed $3,100 in municipal bond interest, $3,100 in interest from corporate bonds, and $4,200 in qualified
dividends.
Assume the Howeils hawe $135,000 of wage income during the year.
. Use Form 8949 and page 1 af Schedule D to compute net long-term and shart term capital gains. Then, compute the Howels' tax
labilty for the year (ignoring the altemative 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
eported to the IRS. (Use the tax rate schedules, Dividends and Cagital Gains Tax Rates))
Mr. Howeil social security number: 412*34.5670
Note: Negative amounts should be indicated by a minus sign. Use 2023 tax rules regardless of year on tax form.
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