Required information

$[$The following information opplies to the questions disployed below.$]$

During $2024,$ your clients, Mr$.$ and Mrs$.$ Howell, owned the following investment assets:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr$.$ and Mrs$.$ Howell decided to sell most of their stocks and the mutual fund in $2024$ and to reinvest in municipal bonds. The following investment assets were sold in $2024$:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

The Howells' broker issued them a form $1099-$B showing the sales proceeds net of the commissions paid. For example, the IBM soles proceeds were reported $\backslash (\backslash$Delta $\backslash$leq $\backslash$$ $13,700\backslash )$ on the Form $1099-$B they received.

In sodition to the sales reflected in the table above, the Howells provided you with the following odditional information concerning $2024$:

$-$ The Howells received a consolidated Form $1099$ from the Vangusrd mutual fund reporting a $\backslash (\backslash$$ $900\backslash )$ long$-$term capital gain distribution. This dividend was reinvested in $31$ additional Vanguard mutual fund shares on $\backslash (6/30/2024\backslash ).$

$-$ In $2018,$ Mrs$.$ Howell loaned $\backslash (\backslash$$ $6,100\backslash )$ to a friend who was starting a new multilevel marketing company called LD$3.$ The friend declared bankruptcy in $2024,$ and Mrs$.$ Howell has been notified she will not be receiving any repayment of the losn.

$-$ The Howells have a $\backslash (\backslash$$ $2,400\backslash )$ shor$-$term capital loss carryover and a $\backslash (\backslash$$ $4,900\backslash )$ long$-$term capital loss carryover from prior years.

$-$ The Howells did not instruct their broker to sell any particular lot of IBM stock.

$-$ The Howells earned $\backslash (\backslash$$ $3,050\backslash )$ in municipal bond interest, $\backslash (\backslash$$ $3,050\backslash )$ in interest from corporate bonds, and $\backslash (\backslash$$ $4,100\backslash )$ in qualified dividends.

$-$ Assume the Howells have $\backslash (\backslash$$ $132,500\backslash )$ of wage income during the year.

a$.$ Use Form $8949$ and page $1$ of Schedule D to compute net long$-$term and short$-$term capital gains. Then, compute the Howells' tax liability for the year $($ignoring the alternative minimum tax and any phose$-$out provisions$)$ assuming they file a joint return, they hove no dependents, they don't make any special tox elections, and their itemized deductions total $\backslash (\backslash$$ $30,000\backslash ).$ Assume that asset boses are reported to the IRS. $($Use the tox rate schedules, Dividends and Copital Gains Tax Rates.$)$

Mr$.$ Howell social security number. $412-34-5670$

Note: Negative amounts should be Indicated by a minus sign. Use $2024$ tax rules regardless of year on tax form.

What is the tax liability for the year?