Stephanie and Matt Are Married with 2 Dependent Children

question 65

Essay

Stephanie and Matt are married with 2 dependent children.During 2017,they have total gross income of $139,900.Their allowable deductions for adjusted gross income total $6,000 and they have $6,000 of allowable itemized deductions.Compute Stephanie and Matt's 2017 taxable income and 2017 income tax liability.
a.Assume that in addition to the above information,Stephanie sold some land that she had held as an investment at a gain of $5,000.What is the effect of the gain on their taxable income and income tax liability? You do not need to recalculate,just explain the general effect of the sale of the land.
b.Assume the same facts as in part (a)and that Matt also sold some stock he purchased several years ago at a $12,000 loss.What is the effect of the gain on the land and the loss on the stock on their taxable income? Explain.

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Definitions:

Political Party

A group formed by people who have similar political ideologies and goals, working together to affect government decisions by having their candidates win elections and hold public office positions.

Coordinating Actions

The process of organizing activities or groups to ensure they work together effectively towards a common goal.

Nominating Candidates

The process by which political parties select and propose individuals to run for public office.

Party's Core Beliefs

Fundamental principles or tenets that form the foundation of a political party's ideology and policy positions.