49. In 2023 Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income
before considering the following events:
a) On May 12, 2023, they sold a painting (art) for $110,000 that was inherited from
Grandma on July 23, 2021. The fair market value on the date of Grandma's death was
$90,000 and Grandma's adjusted basis of the painting was $25,000.
b) They applied a long-term capital loss carryover from 2022 of $10,000.
c) They recognized a $12,000 loss on 11/1/2023 sale of bonds (acquired on 5/12/2012).
d) They recognized a $4,000 gain on 12/12/2023 sale of IBM stock (acquired on
2/5/2023).
e) They recognized a $17,000 gain on the 10/17/2023 sale of rental property (the only
1231 transaction) of which $8,000 is reportable as gain subject to the 25 percent
maximum rate and the remaining $9,000 is subject to the 0/15/20 percent maximum
rates (the property was acquired on 8/2/2017).
f) They recognized a $12,000 loss on 12/20/2023 sale of bonds (acquired on 1/18/2023).
g) They recognized a $7,000 gain on 6/27/2023 sale of BH stock (acquired on
7/30/2014).
h) They recognized an $11,000 loss on 6/13/2023 sale of QuikCo stock (acquired on
3/20/2016).
i) They received $500 of qualified dividends on 7/15/2023.
Complete the required capital gains netting procedures and calculate the Jacksons
2023 tax liability
