Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a historyprofessor at a local university and earns a salary of $66,800. Meg works part time at the same university. She earns$34,300 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of incomeis from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)a. What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year?Short-term capital gainsShort-term capital lossesLong-term capital gainsLong-term capital lossesTotal tax liability$10,300(3,300)16,300(7,300)

Income tax is compulsory for all taxpayers. However, incomes from different sources are taxed at…

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What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions

Section: Chapter Questions

Problem 6CPA: Bill and Anne Chambers are married and file a joint return. They have no children. Their college...

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history
professor at a local university and earns a salary of $66,800. Meg works part time at the same university. She earns
$34,300 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). (Use the tax rate schedules,
Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)
a. What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year?
Short-term capital gains
Short-term capital losses
Long-term capital gains
Long-term capital losses
Total tax liability
$10,300
(3,300)
16,300
(7,300)

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