90.2K

Verified Solution

Link Copied!

Required information

$[$The following information appiles to the questions displayned beiow.$]$

During $2023,$ your clients, Mr$.$ and Mrs$.$ Howrel, owned the following inwestment assets:

No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mc$.$ and Mrs$.$ Howell decided to sell most of their stocks and the mutual fund

in $2023$ and to reinvest in municipal bonds. The following irwestment assets were sold in $2023$:

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

The Hawels' broker issued them a Form $1099-$B showing the sales proceeds net of the commissions paid. For example,

the IBM sales proceeds were reported as $$13,800$ on the Form $1099-$B they received.

In addition to the sales reflected in the table above, the Howeils provided you with the following additional information

conceming $2023$ :

The Howels recelved a Form $1099-8$ from the Vanguard mutual fund reporting a $$900$ long$-$term capital gain

distribution. This distribution was reinvested in $31$ additional Vanguard mutual fund shares on $6/30/2023.$

In $2017,$ Mrs$.$ Howel loaned $$6,200$ to a friend who was starting a new multilevel marketing compary called LD$3.$ The

friend declared bankruptcy in $2023,$ and Mrs$.$ Hawell has been notified she will nat be receiving any repayment of the

loan.

The Howels have a $$2,500$ short term capital loss carryover and a $$5,000$ long$-$term capital loss carryover from prior

years.

The Howels did nat instruct their broker to sell ary particular lot of IBM stack.

The Howels camed $$3,100$ in municipal bond interest, $$3,100$ in interest from corporate bonds, and $$4,200$ in qualified

dividends.

Assume the Howeils hawe $$135,000$ of wage income during the year.

$.$ Use Form $8949$ and page $1$ af Schedule D to compute net long$-$term and shart term capital gains. Then, compute the Howels' tax

labilty for the year $($ignoring the altemative minimum tax and any phase$-$out provisions$)$ assuming they file a joint return, they have no

dependents, they don't make any special tax elections, and their itemized deductions total $$30,000.$ Assume that asset bases are

eported to the IRS. $($Use the tax rate schedules, Dividends and Cagital Gains Tax Rates$))$

Mr$.$ Howeil social security number: $412*34\mathrm{.}5670$

Note: Negative amounts should be indicated by a minus sign. Use $2023$ tax rules regardless of year on tax form.

Complete this question by entering your answers in the tabs below.

Answer & Explanation Solved by verified expert

See Answer