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Carl and Carla Are a Very Wealthy Retired Couple in Their

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Essay

Carl and Carla are a very wealthy retired couple in their late sixties and file a joint tax return. During 2018 they had AGI of $980,000 that is all from investments and equals their net investment income. Their only itemized deduction was a $30,000 charitable contribution because they had sold their homes last year and spent all 2018 traveling around the world.
a. If they itemize, what is their taxable income for 2018 and their income tax?
b. How would your answers change if they claimed the standard deduction instead of itemizing?


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