Samuel, a single taxpayer, has provided you with the following tax information for the 2015 tax year: Salary Any Bank, USA savings interest State of Ohio revenue bonds Capital gain on stock held 11 months Capital gain on stock held 16 months Capital gain on antique furniture held 30 months Capital loss on personal automobile held 42 months Itemized deductions Requirements: $150,000 1.000 500 4,000 9,000 5,000 (2,500) 8,000
Please show all work on the below questions
a) Compute the taxpayer’s taxable income. You must clearly identify (label) each component in order to receive credit.
b) Compute the taxpayer’s tax liability. Be sure to provide supporting calculations for your tax determination.