Question

Required information [The following information applies to the questions displayed below.] 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 $63,900. Meg works part-time at the same university. She earns $33,200 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 2019 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 $ 9,040 (2,040) 15,070 (6,070) Total tax liability

Answer 1

Computation of Taxable income Total Income Matt $63900 Meg $33200 97100 (24400) 7000 Less: Standard Deduction Add: Net Short term Capital Gain (9040-2040) Add: Net Long term Capital Gain (15070-6070) 9000 Taxable income 88700 Computation of Tax Liability (2019) Upto $19,400 10% From $19400 to $78,950 12% From $78,950 to $79,700 22% Tax on Long term capital gain (Since Marginal tax rate is 22%. So 15% rate on $9,000 Long term capital gain) Total Tax Liability 1940 7146 165 1350 15% 10601

57000 Calculation Q Gain Loss Got sold 1500 where @ $38 per share Less; Purchase for 1200 28,800 Balomce 300 @ 18* 5400 Gaim to recognide 134200) $22,800 10800 0 - $ 18 rex ka pinstri 800

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