Demarco and Janine
Required information
Skip to question
[The following information applies to the questions displayed below.]
Demarco and Janine Jackson have been married for 20 years and have four children (no children under age 6 at year-end) who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The couple received salary income of $97,000 and qualified business income of $18,000 from an investment in a
Required:
c. What would their taxable income be if their itemized deductions totaled $29,600 instead of $18,100?
d. What would their taxable income be if they had $0 itemized deductions and $9,200 of for AGI deductions?
e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,800 on the sale of some of their investment assets. What effect does the $5,800 loss have on their taxable income?
f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income?
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
