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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:

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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 incomeis over: But not over: The tax is:
$ 0 $10,27510% of taxable income
$ 10,275 $ 41,775 $1,027.50 plus 12% of the excess over $10,275
$ 41,775 $ 89,075 $4,807.50 plus 22% of the excess over $41,775
$ 89,075 $170,050 $15,213.50 plus 24% of the excess over $89,075
$170,050 $215,950 $34,647.50 plus 32% of the excess over $170,050
$215,950 $539,900 $49,335.50 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 $174,253.50 plus 37% of the excess over $647,850
Schedule Z-Head of Household
If taxable incomeis 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 $161,218.50 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 $1,027.50 plus 12% of the excess over $10,275
$ 41,775 $ 89,075 $4,807.50 plus 22% of the excess over $41,775
$ 89,075 $170,050 $15,213.50 plus 24% of the excess over $89,075
$170,050 $215,950 $34,647.50 plus 32% of the excess over $170,050
$215,950 $323,925 $49,335.50 plus 35% of the excess over $215,950
$323,925 $87,126.75 plus 37% of the excess over $323,925
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