Question - Alan Rice, age 45, and his wife, Ruth, live at 230 Wood Lane,Salt Lake City, UT 84201. Alan's Social Security number is 111-11-1111. Ruth's Social Security number is 123-45-6789. Alan and Ruth are cash basis taxpayers and had the following items for the year 2011:
-Salary of $90,000
- Business bad debt of $28,000 from uncollected rent.
- Sale of x 1244 stock resulting in a gain of $25,000. The stockwas acquired nine months earlier.
- Rental income of $52,000.
- Rental expenses of $28,000.
-Casualty loss on rental property of $12,000.
- Personal casualty loss (from one event) of $25,000.
- Other itemized deductions of $17,000.
-NOL carryover from 2007 of $18,000.
- Federal income tax withheld of $6,000.
Compute Alan and Ruth's 2011 Federal income tax payable (or refund due).