21. You are single and earns and income of $90,000 a year. Recently, you sold stocks...

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21. You are single and earns and income of $90,000 a year. Recently, you sold stocks...

21. You are single and earns and income of $90,000 a year. Recently, you sold stocks that you had held longer than a year for a gain of $20,000. How much tax will you pay on this gain?

business accounting

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Answer 1

Answer #1

Gross income	90000
Above the line deductions	0
AGI	90000
Less: standard deduction	12200
Taxable income	$67800

As the stocks were held for more than a year, any gain on selling them is long term capital gain.

As taxable income of single taxpayer is between $39,376 to $434,550, the long-term capital gain rate applicable is 15%

Therefore,

Tax on capital gain = capital gain * 15% = 20000*15% = $3000

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Answer 2

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