Use tax year 2018, NOT 2017.

60) Comprehensive Problem (Tax Return Problem). Harvey and Betty Duran, both age 37, are married with one dependent child. Determine their taxable income from the following information for 2017, and their tax liability. Both the ABC and XYZ partnerships are passive activities. Assume dividends are taxed as ordinary income. $45,000 62,000 11,000 Harvey's salary Betty's salary Dividends received from domestic corporations (nonqualified) Interest Itemized deductions 7,000 6,920 (14,200) (6,000) 7.700 22,000 Net loss from ABC Partnership (acq 1983) Net loss from XYZ Partnership (acq 1988) Harvey's business income (moonlighting) Harvey's business deductions (before home office expenses) Harvey's home office expenses Net loss on rental property Federal Income tax withheld 10,500 (31,000) 9,600