Autumn and Winter are married with no dependents and file a joint return for 201
ID: 2409421 • Letter: A
Question
Autumn and Winter are married with no dependents and file a joint return for 2018. They had the following for 2018:
Sales Price
Basis
Sale of 100 shares of purchased SunRun stock held 3 years
$ 6,000
$ 4,900
Sale of 50 shares of inherited GM stock held 5 months
6,000
6,400
Interest from bank savings account
2,100
n/a
Qualifying dividends
2,200
n/a
Autumn and Winter’s taxable income is $76,500. How much is their gross tax? Show your work.
Sales Price
Basis
Sale of 100 shares of purchased SunRun stock held 3 years
$ 6,000
$ 4,900
Sale of 50 shares of inherited GM stock held 5 months
6,000
6,400
Interest from bank savings account
2,100
n/a
Qualifying dividends
2,200
n/a
Explanation / Answer
Gross tax computation for 2018
Particulars
Note No
Amount (in $)
Total Taxable Income
76500
Less:
Capital gain
1
700
Qualifying dividends
2200
Total taxable income (After adjustments)
73600
Tax Rates
Upto $19,050- 10%
1905
19,051-77,400-12%
6546
Tax on CG and Dividend
Tax rate for those who are in lower tax brackets is -15%
(700+2200)*15/100
435
Gross tax
8886
Note No-1:
Particulars
Sale Price
Purchase Price
Net Gain/(loss)
Sale of 100 Shares
$6000
$4900
$1100
Sale of 50 Shares
$6000
$6400
($400)
Total Net Gain
700
Particulars
Note No
Amount (in $)
Total Taxable Income
76500
Less:
Capital gain
1
700
Qualifying dividends
2200
Total taxable income (After adjustments)
73600
Tax Rates
Upto $19,050- 10%
1905
19,051-77,400-12%
6546
Tax on CG and Dividend
Tax rate for those who are in lower tax brackets is -15%
(700+2200)*15/100
435
Gross tax
8886
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