Hi I tried to figured out the last part but never be able to get to the right an

Question

Hi I tried to figured out the last part but never be able to get to the right answer.Please help!

eBook Problem 3-67 Capital Gains and Losses (LO. 5) Erin, a single taxpayer, has a taxable income of $103,000 in the current year before considering the following capital gains and losses: Short-term capital gain Long-term capital gain Unrecaptured Section 1250 gain $3,000 22,000 14,000 Erin is in the 28% marginal tax rate. Click the link to view the schedule outlining the treatment of Capital Gains and Losses for individuals. In addition, Erin has an $8,000 long-term capital loss carryover from last year. What are the effects of these transactions on Erin's taxable income and her income tax liability? The gains are added to 13400. Her tax liability on her gains (losses) would be 2530s. her gross income, which increases her taxable income to $

Explanation / Answer

Her taxable income is $134000.

Tax liability on her gains are:

Tax from 0-9225 (10%) = $922.50

from 9226 - 37450 (15%) = 4233.60

from 37451 - 90750 (25%) = 13324.75

from 90751 - 189300 (28%) = (134000 -90750) * 28% = 12110

Total tax = 922.50 + 4233.60 + 13324.75 + 12110 = $30590.85

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