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Business, 11.03.2020 02:55 frankcaroccio0203

During the current year, Ron and Anne sold the following assets:

Capital Asset Market Value Tax Basis Holding Period
L stock $50,000 $41,000 > 1 year
M stock 28,000 39,000 > 1 year
N stock 30,000 22,000 < 1 year
O stock 26,000 33,000 < 1 year
Antiques 7,000 4,000 > 1 year
Rental home 300,000* 90,000 > 1 year

(*)$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property.

a) Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2017 assuming they file a joint return?

b) Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2017 assuming they file a joint return?

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During the current year, Ron and Anne sold the following assets:

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