Reference no: EM132657108
Problem - Tax Computation Problem Mason Phillips, age 45, and his wife, Ruth, live at 230 Wood Lane, Salt Lake City, UT 84101. Mason's Social Security number is 111-11-1111. Ruth's Social Security number is 123-45-6789. Mason and Ruth are cash basis taxpayers and had the following items for 2019:
Salary of $140,000.
Bad debt of $30,000 from uncollected rent.
Collection of unpaid rent from a prior year of $6,000.
Sale of § 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago.
Rental income of $60,000 (property is managed by Mason and Ruth).
Rental expenses of $33,000.
Casualty loss on rental property of $10,000.
Personal casualty loss (from one event) of $3,000; not in a Federally declared disaster area.
Theft loss of $8,000 on a painting held for investment.
Other itemized deductions of $21,000.
Federal income tax withheld of $3,000.
Required - Compute Mason and Ruth's 2019 Federal income tax payable (or refund due).