Problem 7-49 (LO 7-2) (Algo) In 2021, Tom and Amanda Jackson (married filing jointly) have $256,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) a. On May 12, 2021, they sold a painting (art) for $117,000 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandma's death was $93,500 and Grandma's adjusted basis of the painting was $26,400. b. They applied a long-term capital loss carryover from 2020 of $10,700. c. They recognized a $12,350 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011). d. They recognized a $4,420 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021). e. They recognized a $18,680 gain on the 10/17/2021 sale of rental property (the only $1231 transaction), of which $9,120 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,560 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2015). f. They recognized a $12,700 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021). g. They recognized a $7,350 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012). h. They recognized an $11,700 loss on the 6/13/2021 sale of QuikCo stock (acquired on 3/20/2014). i. They received $780 of qualified dividends on 7/15/2021. After completing the required capital gains netting procedures, what will be the Jacksons' 2021 tax liability? Answer is complete but not entirely correct. Total tax liability $ 52,356
Problem 7-49 (LO 7-2) (Algo) In 2021, Tom and Amanda Jackson (married filing jointly) have $256,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) a. On May 12, 2021, they sold a painting (art) for $117,000 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandma's death was $93,500 and Grandma's adjusted basis of the painting was $26,400. b. They applied a long-term capital loss carryover from 2020 of $10,700. c. They recognized a $12,350 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011). d. They recognized a $4,420 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021). e. They recognized a $18,680 gain on the 10/17/2021 sale of rental property (the only $1231 transaction), of which $9,120 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,560 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2015). f. They recognized a $12,700 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021). g. They recognized a $7,350 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012). h. They recognized an $11,700 loss on the 6/13/2021 sale of QuikCo stock (acquired on 3/20/2014). i. They received $780 of qualified dividends on 7/15/2021. After completing the required capital gains netting procedures, what will be the Jacksons' 2021 tax liability? Answer is complete but not entirely correct. Total tax liability $ 52,356
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 49P
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Transcribed Image Text:Problem 7-49 (LO 7-2) (Algo)
In 2021, Tom and Amanda Jackson (married filing jointly) have $256,000 of taxable income before considering the
following events: (Use the dividends and capital gains tax rates and tax rate schedules.)
a. On May 12, 2021, they sold a painting (art) for $117,000 that was inherited from Grandma on July 23, 2019. The fair
market value on the date of Grandma's death was $93,500 and Grandma's adjusted basis of the painting was
$26,400.
b. They applied a long-term capital loss carryover from 2020 of $10,700.
c. They recognized a $12,350 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011).
d. They recognized a $4,420 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021).
e. They recognized a $18,680 gain on the 10/17/2021 sale of rental property (the only $1231 transaction), of which
$9,120 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,560 is subject to the
0/15/20 percent maximum rates (the property was acquired on 8/2/2015).
f. They recognized a $12,700 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021).
g. They recognized a $7,350 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012).
h. They recognized an $11,700 loss on the 6/13/2021 sale of QuikCo stock (acquired on 3/20/2014).
i. They received $780 of qualified dividends on 7/15/2021.
After completing the required capital gains netting procedures, what will be the Jacksons' 2021 tax liability?
Answer is complete but not entirely correct.
Total tax liability
$
52,356
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