chapter 7 tax returns

Mason Phillips, age 45, and his wife, Ruth, live at 230 Wood Lane, Salt Lake City, UT 84101. Mason’s social security number is 111-11-1111. Ruth’s social security number is 123-45-6789. Mason and Ruth are cash basis taxpayers and had the following items for 2013:

· Salary of $140,000

· Bad debt of $30,000 from uncollected rent

· Collection of unpaid rent from a prior year of $6,000

· Sale of S 1244 stock resulting in a loss of $105,000. The stock was acquired eight months ago

· Rental Income of $60,000

· Rental Expenses of $33,000

· Casualty loss on rental property of $10,000

· Personal casualty loss (from one event) of $20,000

· Theft loss of $5,000 on a computer used 100% associated with their jobs

· Theft loss of $8,000 on a painting held for investment

· Other itemized deductions of $18,000

· Federal income tax withheld of $3,000

Compute Mason and Ruth’s 2013 Federal Income tax payable (or refund due).