Sasha and Tara are married, filing jointly. Their correctly determined 2017 taxable income is $127,000. This taxable income includes $5,000 5 1231 gain from the sale of business land that was part of their $22,000 of net long-term capital gain. None of the net lon capital gain was from collectibles. Click here to access the tax rate schedules. If an amount is zero, enter"0". If required, round your answer to the nearest dollar. a. In addition to their Form 1040, the couple would include Form 4797, Form 8949, and Schedule A because they have a 5 1231 gain that became part of their net long-term capital gain. b. Is any of the 5 1231 gain unrecaptured § 1250 gain and subject to the 25% tax rate? Because business land was sold, in their income tax re of the 5 1231 gain is unrecaptured 5 1250 gain subject to the 25% tax rate.
Sasha and Tara are married, filing jointly. Their correctly determined 2017 taxable income is $127,000. This taxable income includes $5,000 5 1231 gain from the sale of business land that was part of their $22,000 of net long-term capital gain. None of the net lon capital gain was from collectibles. Click here to access the tax rate schedules. If an amount is zero, enter"0". If required, round your answer to the nearest dollar. a. In addition to their Form 1040, the couple would include Form 4797, Form 8949, and Schedule A because they have a 5 1231 gain that became part of their net long-term capital gain. b. Is any of the 5 1231 gain unrecaptured § 1250 gain and subject to the 25% tax rate? Because business land was sold, in their income tax re of the 5 1231 gain is unrecaptured 5 1250 gain subject to the 25% tax rate.
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Transcribed Image Text:Problem 17-51 (LO. 4, 7)
Sasha and Tara are married, filing jointly. Their correctly determined 2017 taxable income is $127,000. This taxable income includes a
$5,000 5 1231 gain from the sale of business land that was part of their $22,000 of net long-term capital gain. None of the net long-term
capital gain was from collectibles.
Click here to access the tax rate schedules.
If an amount is zero, enter"0". If required, round your answer to the nearest dollar.
a. In addition to their Form 1040, the couple would include Form 4797, Form 8949, and Schedule A
because they have a § 1231 gain that became part of their net long-term capital gain.
b. Is any of the 5 1231 gain unrecaptured § 1250 gain and subject to the 25% tax rate?
Because business land was sold,
in their income tax return,
of the 5 1231 gain is unrecaptured § 1250 gain subject to the 25% tax rate.
c. Compute the couple's tax on taxable income by using the alternative tax on net capital gain method.
The tax on ordinary taxable income is $
and the tax on the capital gain is $
for a total tax of
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