A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next
A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next
Chapter23: Exempt Entities
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15%
on some long term capital gains. Assuming that the income is equally taxable to California and that the California
ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term
capital gains for the State?
O 0%. LTCG rates in the 9.3% bracket are zero for those gains.
O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains.
O 1%. The LTCG rates for all gains are a single percentage point.
O 4%. LTCG rates are two brackets lower for long-term gains.
Next
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