Bill and Alice are married, age 42 and 40, have no children and had the following transactions during 2014:
a. They sold their old residence on January 28, for $380,000. The basis of their old residence, purchased in 1999, was $70,000. The selling expenses were $20,000. On May 17, they purchased and moved into another residence costing $150,000.
b. On April 28, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2004. Her mother gave Alice the stock on November 15, 2011, when the fair market value was $9,400.
c. On May 24, Bill sold for $21,000 stock inherited from his father. His father died on June 14, 2008, when the fair market value of the stock was $9,000. Bill's father paid $7,000 for the stock in 2002.
d. On August 11, they sold a personal automobile for $8,000: basis of the automobile was $20,000 when it was purchased in 2006.
e. They had carryover and other stock transactions as follows:
LTCL carryover from 2013 ($7,000)
STCG $2,000
LTCG $3,500
Bill had a salary of $40,000 and Alice had a salary of $28,000. They paid state income taxes of $32,000, sales tax of $400, federal income taxes of $15,000 and property taxes of $1,800. In addition they donated $5,600 to their church and paid $4,000 in home mortgage interest.
Compute Bill and Alice's taxable income and tax owed or refund for 2014.