Without considering the following capital gains andâ losses,Cathy, who isâ single, has taxable income of $430,000 and amarginal tax rate of 39.6%. During theâ year, she sold stock heldfor nine months at a gain of $17,000â; stock held for three yearsat a gain of $13,000â; and a collectible asset held for six yearsat a gain of $22,000. Ignore the effect of the gains on anythreshold amounts and assume that her marginal tax rate of 39.6 %.39.6% does not change.
Requirement a. What is her taxable income and the increase inher tax liability after considering the threeâ gains? Her taxableincome is $ What is the increase in her tax liability afterconsidering the threeâ gains? Category Taxable amount Rate Tax NetSTCG 17000 20% 3400 Net LTCG (ANCG) 13000 20% 2600 Net gains fromcollectibles 22,000 20% 4400 Increase in tax liability 10400
Requirement b. In addition to the above threeâ sales, assumethat she sells another asset and has a STCL of $22,000. What is hertaxable income and the increase in her tax liability afterconsidering the fourâ transactions? Her taxable income is $ . Whatis the increase in her tax liability after considering the fourâtransactions? First select the label for the applicable categoryofâ gains, then enter the taxable amount. In the last columncompute the tax for each category and the increase in taxliability. â(Abbreviations used . Enter the net taxable amount foreach category. If a box is not used in the table leave the boxâempty; do not select a label or enter aâ zero.) Category Taxableamount Rate Tax Increase in tax liability
Requirement c. In addition to the above three sales in Partâ a,assume that she sells another collectible asset held seven years asan investment and has a $29,000 capital loss. What is her taxableincome and the increase in her tax liability after considering thefourâ transactions? Her taxable income is $ . What is the increasein her tax liability after considering the fourâ transactions?First select the label for the applicable category ofâ gains, thenenter the taxable amount. In the last column compute the tax foreach category and the increase in tax liability. â(Abbreviationsused . Enter the net taxable amount for each category. If a box isnot used in the table leave the boxâ empty; do not select a labelor enter aâ zero.) Category Taxable amount Rate Tax Increase in taxliability
Requirement d. Determine her medicare tax on net investmentincome inâ (a) if all of the $430,000 of taxable income is due tosalary. Her medicare tax on net investment income, from Requirementa, is $ because all of the $430,000 of taxable income is due tosalary.
Without considering the following capital gains andâ losses,Cathy, who isâ single, has taxable income of $430,000 and amarginal tax rate of 39.6%. During theâ year, she sold stock heldfor nine months at a gain of $17,000â; stock held for three yearsat a gain of $13,000â; and a collectible asset held for six yearsat a gain of $22,000. Ignore the effect of the gains on anythreshold amounts and assume that her marginal tax rate of 39.6 %.39.6% does not change.
Requirement a. What is her taxable income and the increase inher tax liability after considering the threeâ gains? Her taxableincome is $ What is the increase in her tax liability afterconsidering the threeâ gains? Category Taxable amount Rate Tax NetSTCG 17000 20% 3400 Net LTCG (ANCG) 13000 20% 2600 Net gains fromcollectibles 22,000 20% 4400 Increase in tax liability 10400
Requirement b. In addition to the above threeâ sales, assumethat she sells another asset and has a STCL of $22,000. What is hertaxable income and the increase in her tax liability afterconsidering the fourâ transactions? Her taxable income is $ . Whatis the increase in her tax liability after considering the fourâtransactions? First select the label for the applicable categoryofâ gains, then enter the taxable amount. In the last columncompute the tax for each category and the increase in taxliability. â(Abbreviations used . Enter the net taxable amount foreach category. If a box is not used in the table leave the boxâempty; do not select a label or enter aâ zero.) Category Taxableamount Rate Tax Increase in tax liability
Requirement c. In addition to the above three sales in Partâ a,assume that she sells another collectible asset held seven years asan investment and has a $29,000 capital loss. What is her taxableincome and the increase in her tax liability after considering thefourâ transactions? Her taxable income is $ . What is the increasein her tax liability after considering the fourâ transactions?First select the label for the applicable category ofâ gains, thenenter the taxable amount. In the last column compute the tax foreach category and the increase in tax liability. â(Abbreviationsused . Enter the net taxable amount for each category. If a box isnot used in the table leave the boxâ empty; do not select a labelor enter aâ zero.) Category Taxable amount Rate Tax Increase in taxliability
Requirement d. Determine her medicare tax on net investmentincome inâ (a) if all of the $430,000 of taxable income is due tosalary. Her medicare tax on net investment income, from Requirementa, is $ because all of the $430,000 of taxable income is due tosalary.
