Compute the capital gains and losses

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Reference no: EM132213060

Question: Capital Gains and Losses

Jason and Jill are married and have a six-year-old daughter. During the year, they sell one acre of land for $80,000. Three years ago, they paid $70,000 for two acres of land. Their other income and deductions are as follow

Jill's commissions $82,000

Jason's salary 46,000

Dividend income 5,000

Interest income 8,000

Short-term loss on sale of stock in Nippon Inc. (15,000)

Deductions for adjusted gross income 28,000

The standard deduction is $24,000 for married taxpayers filing jointly. The personal and dependency exemptions have been eliminated for 2018. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations to the nearest dollar.

Jason and Jill's taxable income is $________. The tax on their eligible dividends and capital gains is $_________ and total income tax liability is $_______ for the current year.

Reference no: EM132213060

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