Question

PLEASE BREAK DOWN THE STEPS OF WHERE THE NUMBERS CAME FROM AND INDICATE WHETHER YOU USED THE TAX RATE SCHEDULES OR SOMETHING ELSE FOR THE INCOME TAX AND NET INVESTMENT INCOME TAX.

! Required information [The following information applies to the questions displayed below] Henrich is a single taxpayer. In 2019, his taxable income is $454,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule. Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) c. His $454,000 of taxable income includes $47,000 of long-term capital gain that is taxed at preferential rates Income tax Net investment income tax Total tax liability 0.00

Answer 1

Henoich is a single taxpayes 2019 income includes $ 47000 Long-term O $454000 Taxable capital gain Income Tax Net Investment Income TUX Toral Tax liability L 117,643.500 7050 $ 124, 693-50 EXPlanation o Long team gaine ordinary at different saire Income both are taxea (2) S407000 ordinary $454000 - 547000) will be taxed at Income Tax sate. (3 $ 47000 will be taxed at long tem capital sate. (4) For 2019 sing taxpayer: - TUX Rat schedule: > $ 204100 - $ SIO 300 = $ 46,628.50 + 35% of the excess over & 204100 2 Tax liability $ 46, 628.50 + $ 46,628.50 + $ 46, 628.50 + ($ 407000 - $2041DOJ x 35% 202900 x 35%) 71015 - $ 117, 643.50

- Net Investment Income Tax 2 TOX Rates for Net capital gains e qualified Div. Rate single 5 39 376 - $434550 15% F 47000 X 15') = ls iOSO