00 Capital loss from sale of stock held 6 months…………………..(4,000) Compute Sarah’s regular taxable income and her regular tax liability before any credits and prepayments using the applicable tax rates for her ordinary income and any alternative tax rates for other qualifying income. Sarah uses the standard deduction in 2020.

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter4: Income Tax Withholding
Section: Chapter Questions
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Sarah is single and 46 years old when she files her 2020 federal tax return based on the following information:

Salary income…………………………………………………$40,000

Interest income…………………………………………………..5,000

Qualified dividend income……………………………………....4,500

Capital gain from sale of investment land held 3 years………..15,000

Capital loss from sale of stock held 6 months…………………..(4,000)

Compute Sarah’s regular taxable income and her regular tax liability before any credits and prepayments using the applicable tax rates for her ordinary income and any alternative tax rates for other qualifying income. Sarah uses the standard deduction in 2020.

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