Without considering the following capital gains and losses, Charlene, who is single, has a taxable income...
Without considering the following capital gains and losses, Charlene, who is single, has a taxable income of $660,000 and a marginal tax rate of 37%. During the year, she sold stock held for nine months at a gain of $10,000, stock held for three years at a gain of $15,000; and a collectible asset held for six years at a gain of $20,000. Ignore the effect of the gains on any threshold amounts.
a. What is her taxable income and the increase in her income tax liability after considering the three gains?
b. In addition to the above three sales, assume that she sells another asset and has an STCL of $14,000. What is her taxable income and the increase in her tax liability after considering the four transactions?
c. In addition to the above three sales in part a, assume that she sells another collectible asset held seven years as an investment and has a $27,000 capital loss. What is her taxable income and the increase in her tax liability after considering the four transactions?
d. Determine her Medicare tax on net investment income in a) if all of the $660,000 of taxable income is due to salary.
Homework Answers
Add Answer to:
Without considering the following capital gains and losses,
Charlene, who is single, has a taxable income...
Trisha, who is single and has taxable income of $300,000, sells the following capital assets in...
Trisha, who is single and has taxable income of $300,000, sells the following capital assets in 2019 with gains and losses as shown. With accurate calculations please. Asset Gain or (Loss) Holding Period A $15,000 15 months B 7,000 20 months C (3,000) 14 months a. Determine Trisha’s increase in income tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phaseout amounts. b. Determine...
Kevin is single and has taxable income of $17,000 without considering the sale of a capital...
Kevin is single and has taxable income of $17,000 without considering the sale of a capital asset in October of 2017 for $12,500. That asset was purchased five years earlier and has a tax basis of $7,500. The tax liability applicable to only the capital gain is A) $0. B) $500. C) $1,000. D) $1,500.
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the...
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the netting! process between groups to determine the taxpayer's net capital gain and the tax rate paid on such gain. Assume the taxpayer files jointly and these are the only capital assets sold during the year. a. A $2,000 loss on the sale of a capital asset held six months; a $9,000 gain on the sale of a capital asset held for three years. Taxable...
Mary files as Head of Household and has the following gains and losses during 2019: LTCG...
Mary files as Head of Household and has the following gains and losses during 2019: LTCG LTCL STCG STCL $12,000 4.000 4,000 8,000 With respect only to her Gains Losses, how much is Mary's tax liability if she has taxable income of $50,000 and is in the 12% tax bracket? How much is her tax liability for her gains/losses if Mary's taxable income is $70,000 and her tax bracket is 22% (not 12%)?
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses:...
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income $75,900 5,200 8,700 Dividend income Long-term capital gain 10,500 Short-term capital loss 14,900 3,300 Deductions for AGI Deductions from AGI 14,800 The standard deduction is $12,000 for single taxpayers. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations and final answers to the...
During 2020, Jackson, who is single, had the following capital gains and losses: Gain from the...
During 2020, Jackson, who is single, had the following capital gains and losses: Gain from the sale of a coin collection (held 3 years) $ 5,000 Gain from the sale of LMN stock held as an investment (held 6 years) 4,000 Gain from the sale of ABC stock held as an investment (held 10 months) 1,000 Loss from the sale of XYZ stock held as an investment (held 11 months) 3,000 ow much is Jackson's total tax liability for these...
Jackson, a taxpayer with over $500,000 of taxable income, has the following gains and losses on...
Jackson, a taxpayer with over $500,000 of taxable income, has the following gains and losses on stock transactions in the current year : A $3000 gain on stock held for five months, a $1000 gain on stock held for seven months, a $1500 loss on stock held for five months, a $1000 loss on stock held for 24 months, and a $3000 gain on stock held for 19 months . How much of Jackson’s net capital game is subject to...
10. Kirby, a single taxpayer, has taxable income of $30,000 and payer, has taxable income of $30,000 and is in the...
10. Kirby, a single taxpayer, has taxable income of $30,000 and payer, has taxable income of $30,000 and is in the 12% tax bracket. During 2019, she had the following capital asset transactions: $11,000 10,000 Long-term gain from the sale of a coin collection Long-term gain from the sale of a land investment Short-term gain from the sale of a stock investment Kirby's tax consequences from these gains are as follows: a. (5% * $10,000) + (12% * $13,000). b....
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed...
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed as short-term capital gain, long-term capital gain taxed capital gain taxed at 15%, or long-term capital gain taxed at 0%. Assum as single and this is the only capital asset sold during the year. determine whether the gain ved at 20%, long-term %. Assume the taxpayer files a. Stock held for four years is sold for a $3,000 gain; taxable income is $25.000 b....
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses:...
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income Dividend income Long-term capital gain Short-term capital loss Deductions for AGI $75,100 5,200 8,800 10,400 14,800 3,500 14,600 Deductions from AGI The standard deduction is $12,000 for single taxpayers. Dividends and met long-term capital gains are taxed at a rate of 15 Refer to the Tax schedules table to answer the following question. Round Intermediate calculations and final answers to the...
5. Netting Capital Gains and Losses. (Obj. 3) In each of the following cases, use the netting! process between groups to determine the taxpayer's net capital gain and the tax rate paid on such gain. Assume the taxpayer files jointly and these are the only capital assets sold during the year. a. A $2,000 loss on the sale of a capital asset held six months; a $9,000 gain on the sale of a capital asset held for three years. Taxable...
Mary files as Head of Household and has the following gains and losses during 2019: LTCG LTCL STCG STCL $12,000 4.000 4,000 8,000 With respect only to her Gains Losses, how much is Mary's tax liability if she has taxable income of $50,000 and is in the 12% tax bracket? How much is her tax liability for her gains/losses if Mary's taxable income is $70,000 and her tax bracket is 22% (not 12%)?
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income $75,900 5,200 8,700 Dividend income Long-term capital gain 10,500 Short-term capital loss 14,900 3,300 Deductions for AGI Deductions from AGI 14,800 The standard deduction is $12,000 for single taxpayers. Dividends and net long-term capital gains are taxed at a rate of 15%. Refer to the Tax schedules table to answer the following question. Round intermediate calculations and final answers to the...
During 2020, Jackson, who is single, had the following capital gains and losses: Gain from the sale of a coin collection (held 3 years) $ 5,000 Gain from the sale of LMN stock held as an investment (held 6 years) 4,000 Gain from the sale of ABC stock held as an investment (held 10 months) 1,000 Loss from the sale of XYZ stock held as an investment (held 11 months) 3,000 ow much is Jackson's total tax liability for these...
10. Kirby, a single taxpayer, has taxable income of $30,000 and payer, has taxable income of $30,000 and is in the 12% tax bracket. During 2019, she had the following capital asset transactions: $11,000 10,000 Long-term gain from the sale of a coin collection Long-term gain from the sale of a land investment Short-term gain from the sale of a stock investment Kirby's tax consequences from these gains are as follows: a. (5% * $10,000) + (12% * $13,000). b....
Capital Gains and Losses. (Obj. 2) For each of the following cases, determine would be taxed as short-term capital gain, long-term capital gain taxed capital gain taxed at 15%, or long-term capital gain taxed at 0%. Assum as single and this is the only capital asset sold during the year. determine whether the gain ved at 20%, long-term %. Assume the taxpayer files a. Stock held for four years is sold for a $3,000 gain; taxable income is $25.000 b....
Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income Dividend income Long-term capital gain Short-term capital loss Deductions for AGI $75,100 5,200 8,800 10,400 14,800 3,500 14,600 Deductions from AGI The standard deduction is $12,000 for single taxpayers. Dividends and met long-term capital gains are taxed at a rate of 15 Refer to the Tax schedules table to answer the following question. Round Intermediate calculations and final answers to the...
Most questions answered within 3 hours.
-
A beta (β) particle is described by which of the following?
Select the correct answer below:...
asked 1 minute ago -
A new machine costs $150,000, lasts 10 years, has an annual
O&M cost of $50,000, and...
asked 4 minutes ago -
A newspaper in a large Midwestern city reported that the
National Association of Realtors said that...
asked 6 minutes ago -
1. Develop a use case diagram for the bank case study described
in Chapter 1. 2....
asked 15 minutes ago -
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 22 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 24 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 43 minutes ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 47 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 50 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 1 hour ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 1 hour ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 1 hour ago