Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2020 taxable year. Note that all gain realized on the sale of the rental property is 25 percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions itemized deductions Standard deduction QBID Tax credits Single 160,700 None None 12,400 None None SALES DATA CHARACTER CHECK TOTALS Date Purchased Date Sold Adjusted Basis Amount Realized Type Description Stock A Stock B Stock C Stock D Antiques Rental property 6/1/2019 1/15/2017 2/1/2020 7/14/2012 3/1/1904 8/15/2010 1/2/2020 11/30/2020 6/15/2020 9/5/2020 7/1/2020 4/22/2020 18,000 11,000 200 22.000 20,000 69,000 6.000 336,100 1,200 16.000 30,000 99,000 Holding ST LT ST LT LT LT 15 15 15 15 28 25 Gain (Loss) (12,000) ST 325,100 LT 1,000 LT (6,000) LT 10,000 30,000 15 28 25 15 (11,000) 10,000 30,000 319,100 Using the taxpayer information and sales data below, net any capital gains and losses, apply the capital gain netting process, use the tax formula to determine the taxable income, and calculate the taxpayer's tax liability for the 2020 taxable year. Note that all gain realized on the sale of the rental property is 25 percent rate gain. See the sample solution provided for the recommended presentation. Your solution must show the netting process and tax liability calculations. Solutions that do not show work will not be awarded credit. TAXPAYER INFORMATION Marital status Ordinary income before capital gains (losses) For AGI deductions itemized deductions Standard deduction QBID Tax credits Single 160,700 None None 12,400 None None SALES DATA CHARACTER CHECK TOTALS Date Purchased Date Sold Adjusted Basis Amount Realized Type Description Stock A Stock B Stock C Stock D Antiques Rental property 6/1/2019 1/15/2017 2/1/2020 7/14/2012 3/1/1904 8/15/2010 1/2/2020 11/30/2020 6/15/2020 9/5/2020 7/1/2020 4/22/2020 18,000 11,000 200 22.000 20,000 69,000 6.000 336,100 1,200 16.000 30,000 99,000 Holding ST LT ST LT LT LT 15 15 15 15 28 25 Gain (Loss) (12,000) ST 325,100 LT 1,000 LT (6,000) LT 10,000 30,000 15 28 25 15 (11,000) 10,000 30,000 319,100
