Calculate the tax liability

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Reference no: EM131268025

In 2016, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Use the tax rate schedules.) On May 12, 2016, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2014. The fair market value on the date of Grandma’s death was $90,000 and Grandma’s adjusted basis of the painting was $25,000. Applied a long-term capital loss carryover from 2015 of $10,000. Recognized a $12,000 loss on 11/1/2016 sale of bonds (acquired on 5/12/2006). Recognized a $4,000 gain on 12/12/2016 sale of IBM stock (acquired on 2/5/2016). Recognized a $17,000 gain on the 10/17/2016 sale of rental property (the only §1231 transaction) of which $8,000 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,000 is subject to the 15 percent maximum rate (the property was acquired on 8/2/2010). Recognized a $12,000 loss on 12/20/2016 sale of bonds (acquired on 1/18/2016). Recognized a $7,000 gain on 6/27/2016 sale of BH stock (acquired on 7/30/2007). Recognized an $11,000 loss on 6/13/2016 sale of QuikCo stock (acquired on 3/20/2009). Received $500 of qualified dividends on 7/15/2016. Calculate the Jacksons’ 2016 tax liability. (Do not round intermediate calculations.)

Reference no: EM131268025

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