Question

6 var 5,600 LLO (1,100 12. In 2019 Shaun, who files his federal income tax return as a "single" taxpayer, received wages of $180,000 from his job working in Chicago as a civil engineer and had $40,000 of long-term capital gains from the sale of XYZ Corporation stock. He had no other items of income, no for AGI deductions, and he claimed the standard deduction on his 2019 return. Shaun's net investment income tax liability in 2019 will be: Standard deduction a. $0 $12,200 b. $296 c. $760 d. $1,520 e. $6,000 O 00.00 175 O

after having the $18,750 whats the next step to get the $6,250?

Answer 1

12) Shaun's net investment income tax liability in 2019 will be:

Ans: $ 6000

Explanation:

1) Long term capital gain $ 40,000

2) For 2019, long term capital gain tax rate:

Long term capital gain tax rate	Income
0%	$0 - $39375
15%	$39376- $434,550
20%	$ 434,551 or more

3) His income is $ 180,000 so tax rate would be 15%

4) Net Investment tax liability:

=$40,000 × 15%

= $6000

12. How much gross income will Michael recognize in 2019 in connection with the first annuity payment

Ans: ( B) $ 6250

Explanation:

1) Use Table for expected Return Multiple For ordinary singal life annuity.

2)

For Age 70

16

3)

(A)	Expected Return Multiple	16
(B)	Number of annual payments	1
(C)	Amount of payment	$ 25000
(D)	Expected total payment( a×b×c)	$400,000
(E)	Payment Made'initially ( given)	$300,000
(F)	Return of capital percent ( e÷d)	75%
(G)	Return of capital per payment( $25000× 75%)	$ 18,750
(H)	Gross income per payment ( C- G)	$6250