Question

Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Fox's income tax and Medicare contribution tax if his taxable income before consideration of his capital transactions is $441,000. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Tax on ordinary income Tax on income taxed at preferential rate Medicare contribution tax Total S

Answer 1

Taxable Income before Capital Gains		$441,000
Short Term Capital Gain		$14,300
Long Term Capital Gain	$64,000
Less: Long Term Capital Loss	($12,900)	$51,100
Net Capital Gains		$65,400
Taxable Income		$506,400
Taxed at Ordinary Rates (441000+14300)		$455,300
Tax on Ordianry Income (46629+(455300-204100)*35%)		$134,549
Tax on Income taxed at Preferential Rates (51100*20%)		$10,220
Medicare tax (65400*3.8%)		$2,485
Total		$147,254