The Smith Family Has the Following Income

Essay

The Smith family has the following income
During the tax year they sold a vacation home for $65,000 that they had acquired several years ago for $58,000. They also sold some of their GM stock, receiving $22,000 after brokerage commissions. The shares had originally been purchased for $30,000. They paid $19,000 interest on their home mortgage and $3,000 interest on credit card debt. They paid state income tax of $7,000 and real estate tax of $3,000. They donated $2,000 to their church. They also paid $1,400 toward the support of an elderly parent. The Smith's have two small children. The personal exemption rate is $3,050. What is the Smith's taxable income? Show all calculations clearly.