Discuss considering the tax effect of their asset sales

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Reference no: EM131794683

During the current year, Ron and Anne sold the following assets:

Capital Asset

Market Value

Tax

Basis

Holding Period

 L stock

$50,000

$41,000

> 1 year

 M stock

  28,000

39,000

> 1 year

 N stock

  30,000

22,000

< 1 year

 O stock

  26,000

33,000

< 1 year

 Antiques

    7,000

4,000

> 1 year

Rental home

  300,000*

90,000

> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). 

Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2016 assuming they file a joint return?

Reference no: EM131794683

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