t References Mailings Review Henry, a single taxpayer with a marginal tax rate o
ID: 2598621 • Letter: T
Question
t References Mailings Review Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year Asset ABC Stock XYZ Stock Stamp Collection RST Stock Rental Home Sale Price Tax Basis Gain/Loss Holding Period S 50,000 S 25,000 S 25,000 More than 1 Year S 12,000 S 9,000 S 3,000 Less than 1 Year s 10,000 S 5,000 5,000 More than 1 Year s 13,000 S 19,000 S (6,000) Less than 1 Year s 100,000 S 50,000 50,000 More than 1 Year *S25 ,000 of the gain is § 1250 recapture. The remaining gain is 0/15/20 percent gain. what are Harry's recognized gains/losses for the year and what tax rate(s) will apply to those gains/losses? MacBook AirExplanation / Answer
long-term capital gain taxed at 28% = stamp collection 5000 - short term capital loss 3000(gain on xyz stock +loss on RST stock ) = 2000
long-term capital gain taxed at 25% = 25000 (rental home gain taxed at 25%)
long-term capital gain taxed at 0/15/20% or long-term capital gain taxed at 15% = 50000 = (remaining gains from rental home 25000 + ABC stock 25000)
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