Question

Barry and Liz, both under age 65, file a joint tax return for their 2019 tax...

  1. Barry and Liz, both under age 65, file a joint tax return for their 2019 tax year reporting the following information:
  • Income from salaries.................................................. $65,000
  • Interest income.............................................................. 5,000
  • Qualified dividend income............................................ 18,000
  • Capital gain from sale of stock held 15 years................. 25,000
  • Capital loss from sale of stock held 5 years .................. (5,400)
  • Itemized expenses........................................................ 22,600

Compute the couple’s regular taxable income and their regular 2019 tax liability using the applicable rates for their ordinary income and any alternative rates for other qualifying income. Ignore the net investment income tax.

Homework Answers

Answer #1
Income From Salaries $     65,000
Interest Income $        5,000
Long term Capital Gain $     25,000
Long Term Capital Loss $     (5,400)
Gross Total Income $     89,600
Less:Adjustments
Qualidfied Dividend Income
(18000-(18000X15/100) $     15,300
Total Taxable Income $     74,300
Less Deduction
Itemized Expenses $     22,600
Taxable Income $     51,700
Tax Liablity (22%) $     11,374
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