Question

In 2018, Tom and Amanda Jackson (married filing jointly) have $256,000 of taxable income before considering the following events:

A) On May 12,2018, they sold a painting for $117,000 that was inherited from Grandma on July 23, 2016. The fair market value in the date of Grandma's death was $93,500 and Grandma's adjusted basis of the painting was $26,400

B) they applied a long-term capital loss carryover from 2017 of $10,700

C) they recognized a $12,250 loss on the 11/1/2018 sale of bonds (acquired on 5/12/2008)

D) they recognized a $4,420 gain on the 12/12/2018 sale of IBM stock (acquired on 2/5/2018)

E) they recognized a $18,680 gain on the 10/17/2018 sale of rental property of which $9,120 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,560 is subject to the 0/15/20 percent maximum rates

F) they recognized a $12,700 loss on the 12/20/2018 sale of bonds (acquired on 1/18/2018)

G) they recognized a $7,350 gain on the 6/27/2018 sale of BH stock (acquired on 7/30/2009)

H) they recognized an $11,700 loss on the 6/13/2018 sale of QuikCo stock (acquired on 3/20/2011)

I) they received $780 of qualified dividends on 7/15/2018

After completing the required capital gains netting procedures, what will be the Jacksons' 2018 tax liability/

Answer 1