Question

Jane and Blair are married taxpayers filing jointly and have 2019 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital asset held five years, $2,100 of gain from a capital asset held seven months, and $13,000 of gain from a capital asset held four years. All of the capital assets were stock in publicly traded corporations. Jane and Blair also have qualified dividend income of $3,000.

Indicate whether the following items are subject to the alternative tax computation. Select "Yes" if subject to the alternative tax computation; otherwise select "No".

a. $5,000 of gain from a capital asset held five years Yes b. $13,000 of gain from a capital asset held four years Yes c. $3,000 of qualified dividend income Yes d. $2,100 of gain from a capital asset held seven months No

What is the couple’s tax on taxable income and the related tax savings from the alternative tax computation (if any)?

The couple's tax on taxable income using the alternative tax calculations is $

The related tax savings from the alternative tax computation is $

Answer 1

Sol ao19 tazos lencome d 10 000 tazable income incoudes 5.000 gain fsom o The capital osser held five years $2.100 d gain fsom a capites asset helct seven mOnihs 13.000 dgain fem a aPitau asset held feus yeoBS Jane and Blais olso have uolified dvidend ne do 3.000. on taaable income using the autesno The couple s ta1 tive taz aiaation is Yes" tems ase suejects to altesnatíve tax compu tation caicubted theis ondinasy income and ong-te6m capital gain. Osdinosy in come taable income 3ainfoom a apitau gain foom o apital osset held fours yos Osset walified dividend income, Oainosy income t07.000 .000-13-000- 3.000 86 000 Odinasy income

Lona tesm capital gain Cinclalde qwo0ified dvideng gain fsoma capital oSset held in 5yao 9i0 foam a apPital osset held in 4 yeos + dividend income Long tesm capital goio5.00D+13.000+3.000 S21.000 Long tem dividend gin- Long tesm dvidend capitou gain oclude quoifies $ 21.000 Long tei m Copital 9ain $21.00 Shost tesm capital in c 2.100 uil be teied as Pes sdinars income tox Tates Toz Component S Tax Computation. TOX on oxdinooy inome $ 3.150 $21.000 X 15% Tax on LTCG 8.907+(86 006- 3.400) X222 $10.799 Total tax ioiity$13.949 Ta on Long tesm copiteal ain (LTC $8.907 +86.000- 77400x22% TOx on LTCG $1o.799.

Toa on ondnosy income - Long tesm copitau goio X 15% Tao on o3dinasy ncome 91.00D X 15 % $3.150 Tod on os inos4 intome Tax on ordinarsy income Total tar abiity Tax on LTCG 3.150+ 10.799 Totel te siabi ity 13.949 The ceuPles tax on tedable iocome usin9 the autesnatve ta calCulations s 13.949 ) The gelated tea sovings foOm the autesnative to Computation is = Taz with our alt. taz Calculation CuTsent te 8.907 + (t07000-77400)x222- 13949 e$15419-13.949 $1.470 The selatec ter soving s foom the alteonati ve tay $1-470 Computation is =