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 2015 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 2015 assuming they file a joint return?