Reference no: EM133063647
Tax Problem - Drug Eternal and his wife, Makkari, are married cash basis taxpayers. During 2021, they had the following items:
Salary of $140,000.
Collection of unpaid rent from a prior year of $6,000.
Rental income of $60,000 (not including prior year unpaid rent; the rental property is managed by the Phillips).
Rental expenses of $33,000.
Uncollected rent (bad debts) of $4,000.
Casualty loss on rental property of $10,000.
Sale of 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago.
Personal casualty loss (from one event) of $3,000; not in a Federally declared disaster area.
Theft loss of $8,000 on a painting held for investment.
Other itemized deductions of $21,000.
Federal income tax withheld of $3,000.
Required - Compute Druig and Makkari's 2021 Federal income tax payable (or refund due).