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Check my work 1 10 points In 2021, Tom and Amanda Jackson (married filing jointly) have $252,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) a. On May 12, 2021, they sold a painting (art) for $116,500 that was inherited from Grandma on July 23, 2019. The fair market value on the date of Grandma's death was $93,250 and Grandma's adjusted basis of the painting was $26,300. b. They applied a long-term capital loss carryover from 2020 of $10,650. c. They recognized a $12,325 loss on the 11/1/2021 sale of bonds (acquired on 5/12/2011). d. They recognized a $4,390 gain on the 12/12/2021 sale of IBM stock (acquired on 2/5/2021). e. They recognized a $18,560 gain on the 10/17/2021 sale of rental property (the only $1231 transaction), of which $9,040 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,520 is subject to the 0/15/20 percent maximum rates (the property was acquired on 8/2/2015). f. They recognized a $12,650 loss on the 12/20/2021 sale of bonds (acquired on 1/18/2021). g. They recognized a $7,325 gain on the 6/27/2021 sale of BH stock (acquired on 7/30/2012). h. They recognized an $11,650 loss on the 6/13/2021 sale of Quik Co stock (acquired on 3/20/2014). i. They received $760 of qualified dividends on 7/15/2021. eBook Hint Ask After completing the required capital gains netting procedures, what will be the Jacksons' 2021 tax liability? Print Total tax liability References Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Rate* Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates 0% $0 - $80,800 $0 - $40,400 $0-$40,400 $0-$54,100 $0-$2,700 15% $80,801 - $501,600 $40,401 - $250.800 $40,401 - $445,850 $54,101 - $473,750 $2,701 - $13,250 20% $501,601+ $250.801+ $445,851+ $473,751+ $13,251+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose). 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: S 0 $ 9.950 10% of taxable income $ 9,950 $ 40.525 $995 plus 12% of the excess over $9,950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $ 164,925 S14,751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33,603 plus 32% of the excess over $164.925 $ 209,425 $ 523,600 $47,843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: s 0 $ 19.900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 $ 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: s 0 $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 $6,220 plus 22% of the excess over $54,200 $ 86,350 $164.900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32,145 plus 32% of the excess over $164,900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40.525 $995 plus 12% of the excess over $ 9,950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $ 164,925 $14,751 plus 24% of the excess over $86,375 $ 164,925 $ 209,425 $33,603 plus 32% of the excess over $164.925 $ 209,425 $ 314,150 $47,843 plus 35% of the excess over $209,425 $ 314,150 $84,496.75 plus 37% of the excess over $314,150

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