Question

Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $65,000. Meg works part-time at the same university. She earns $39,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year?

                        Short-term capital gains      $9,000

                        Short-term capital losses    ($2,000)

                        Long-term capital gains      $15,000

                        Long-term capital losses     ($6,000)

Answer 1

Answer- Comers’ tax liability for 2019 if they report the following capital gains and losses for the year:-

Particulars	Amount
Salaries ($65,000+$39,000)	$104,000
Short term capital gain, net ( $9,000-$2,000)	$7,000
Long-term capital gain.net ($15,000-$6,000	$9,000
Adjusted Gross Income	$120,000
Less: Standard deduction	$24,400
Taxable Income	$95,600
Less: Preferential taxed income	$9,000
Income taxed at ordinary rates	$86,600
Income taxed at Capital gain rate	$9,000
Regular Tax ($9,086)+ ($86,600-78,950)*22%)	$10,769
Preferential tax- ($9,000*15/100)	$1,350
Tax Liability	$12,119

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