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44. Matt and Meg Comer are married. They do not have any children. Matt works as

ID: 2539740 • Letter: 4

Question

44. Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at the same university. She earns $21,000 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). a. What is the Comers' tax liability for 2017 if they report the following capital gains and losses for the year? Short-term capital gains 9,000 Short-term capital losses (2,000) Long-term capital gains 15.000 Long-term capital losses (6,000) hat is the Comers tax liability for 2017 if they report the following capital gains and losses for the year? t Short-term capital gains $ 1,500 0 Long-term capital gains 13.000 Long-term capital losses (10,000) Short-term capital losses

Explanation / Answer

1

What is the comer's tax liability for 2017 if they report the following capital gains and losses for the year

Particulars

$

Salary

$85,000

Net short term capital gain

$7,000

Net long term capital gain

$9,000

AGI

$1,01,000

Standard deduction

($12,700)

Personal exemption

($9,100)

Taxable Income

$79,200

Less: Preferentially taxed income

($9,000)

Income tax at ordinary rates

$70,200

Tax on 70200

1865+[$70,200-$18650]*15%

$9,597.50

Income subject to capital gain rates ($9000*0%)

0

Total tax liability

$9,597.50

2

What is the comer's tax liability for 2017 if they report the following capital gains and losses for the year

Particulars

$

Salary

$85,000

Net short term capital gain

$1,500

Net long term capital gain

$3,000

AGI

$89,500

Standard deduction

($12,700)

Personal exemption

($9,100)

Taxable Income

$67,700

Less: Preferentially taxed income

($3,000)

Income tax at ordinary rates

$64,700

Tax on 64700

1865+[$64,700-$18650]*15%

$8,772.50

Income subject to capital gain rates ($3000*0%)

0

Total tax liability

$8,772.50

1

What is the comer's tax liability for 2017 if they report the following capital gains and losses for the year

Particulars

$

Salary

$85,000

Net short term capital gain

$7,000

Net long term capital gain

$9,000

AGI

$1,01,000

Standard deduction

($12,700)

Personal exemption

($9,100)

Taxable Income

$79,200

Less: Preferentially taxed income

($9,000)

Income tax at ordinary rates

$70,200

Tax on 70200

1865+[$70,200-$18650]*15%

$9,597.50

Income subject to capital gain rates ($9000*0%)

0

Total tax liability

$9,597.50

2

What is the comer's tax liability for 2017 if they report the following capital gains and losses for the year

Particulars

$

Salary

$85,000

Net short term capital gain

$1,500

Net long term capital gain

$3,000

AGI

$89,500

Standard deduction

($12,700)

Personal exemption

($9,100)

Taxable Income

$67,700

Less: Preferentially taxed income

($3,000)

Income tax at ordinary rates

$64,700

Tax on 64700

1865+[$64,700-$18650]*15%

$8,772.50

Income subject to capital gain rates ($3000*0%)

0

Total tax liability

$8,772.50

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