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Required information

$[$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.$)$

$$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 $$20,000($all ordinary$)$

before considering the tax effect of their asset sales, what is their gross tax

liability for $2022$ assuming they file a joint return?

Answer is complete but not entirely correct.

Tax Rates for Net Capital Gains and Qualified Dividends

Rate$*$ Taxable Income

Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates

$0\%$ $$0-$ $$83,350$ $$0-$ $$41,675$ $$0-$ $$41,675$ $$0-$ $$55,800$ $$0-$ $$2,800$

$15\%$ $$83,351-$ $$517,200$ $$41,676-$ $$258,600$ $$41,676-$ $$459,750$ $$55,801-$ $$488,500$ $$2,801-$ $$13,700$

$20\%$ $$517,201+$ $$258,601+$ $$459,751+$ $$488,501+$ $$13,701+$

$*$This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table $($net capital gains and qualified dividends are included in taxable income last for this purpose$).$

$2022$ Tax Rate Schedules

IndividualsSchedule X$-$Single

If taxable income$$is over: But not over: The tax is:

$ $0$ $$10,27510\%$ of taxable income

$ $10,275$ $ $41,775$ $$1,027\mathrm{.}50$ plus $12\%$ of the excess over $$10,275$

$ $41,775$ $ $89,075$ $$4,807\mathrm{.}50$ plus $22\%$ of the excess over $$41,775$

$ $89,075$ $$170,050$ $$15,213\mathrm{.}50$ plus $24\%$ of the excess over $$89,075$

$$170,050$ $$215,950$ $$34,647\mathrm{.}50$ plus $32\%$ of the excess over $$170,050$

$$215,950$ $$539,900$ $$49,335\mathrm{.}50$ plus $35\%$ of the excess over $$215,950$

$$539,900$ $$162,718$ plus $37\%$ of the excess over $$539,900$

Schedule Y$-1-$Married Filing Jointly or Qualifying Widow$($er$)$

If taxable income is over: But not over: The tax is:

$ $0$ $ $20,55010\%$ of taxable income

$ $20,550$ $ $83,550$ $$2,055$ plus $12\%$ of the excess over $$20,550$

$ $83,550$ $$178,150$ $$9,615$ plus $22\%$ of the excess over $$83,550$

$$178,150$ $$340,100$ $$30,427$ plus $24\%$ of the excess over $$178,150$

$$340,100$ $$431,900$ $$69,295$ plus $32\%$ of the excess over $$340,100$

$$431,900$ $$647,850$ $$98,671$ plus $35\%$ of the excess over $$431,900$

$$647,850$ $$174,253\mathrm{.}50$ plus $37\%$ of the excess over $$647,850$

Schedule Z$-$Head of Household

If taxable income$$is over: But not over: The tax is:

$ $0$ $ $14,65010\%$ of taxable income

$ $14,650$ $ $55,900$ $$1,465$ plus $12\%$ of the excess over $$14,650$

$ $55,900$ $ $89,050$ $$6,415$ plus $22\%$ of the excess over $$55,900$

$ $89,050$ $$170,050$ $$13,708$ plus $24\%$ of the excess over $$89,050$

$$170,050$ $$215,950$ $$33,148$ plus $32\%$ of the excess over $$170,050$

$$215,950$ $$539,900$ $$47,836$ plus $35\%$ of the excess over $$215,950$

$$539,900$ $$161,218\mathrm{.}50$ plus $37\%$ of the excess over $$539,900$

Schedule Y$-2-$Married Filing Separately

If taxable income is over: But not over: The tax is:

$ $0$ $ $10,27510\%$ of taxable income

$ $10,275$ $ $41,775$ $$1,027\mathrm{.}50$ plus $12\%$ of the excess over $$10,275$

$ $41,775$ $ $89,075$ $$4,807\mathrm{.}50$ plus $22\%$ of the excess over $$41,775$

$ $89,075$ $$170,050$ $$15,213\mathrm{.}50$ plus $24\%$ of the excess over $$89,075$

$$170,050$ $$215,950$ $$34,647\mathrm{.}50$ plus $32\%$ of the excess over $$170,050$

$$215,950$ $$323,925$ $$49,335\mathrm{.}50$ plus $35\%$ of the excess over $$215,950$

$$323,925$ $$87,126\mathrm{.}75$ plus $37\%$ of the excess over $$323,925$