Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduc-tion, and $10,000 in long-term capital gains, for total taxable income of $40,000. For 2020, single taxpayers pay 0 percent on long-term gains up to $40,000. Assuming a tax of $3,406 on the $30,000 of ordinary income, what is Harold’s tax? a. $3,406 b. $3,503 c. $3,623 d. $4,094 e. $4,906

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Q: Fred, age 67, and Freda, age 66 and blind, are married and will file a joint return for 2020.…

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Q: Esposito's yearly taxable income totals $78,000, and he pays $20,050 in federal income tax every…

A: Espsito's Yerly taxable income is $78,000 Tax paid is $20,050   To Find: Net Federal income tax…

Q: Miriam Anne is a single taxpayer. What federal taxes does she pay if her taxable income is (a)…

A: Given that: Miriam Anne is a single taxpayer.

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Q: MT adjustments, Adam and his wife Cindy have AMTI of $1,090,000. If Adam and Cindy file a joint tax…

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Q: Dawn is a single taxpayer. Her income and expenses for the year is as follows: Income…

A:

Q: Corporation, a cash basis taxpayer, received $10,000 from a customer in 2019. In that year, the…

A: Whenever the taxes you had already paid exceed your entire tax burden, the government reimburses you…

Q: Crosby is self-employed. He has self-employment income of $100,000, and expenses of $80,000. Crosby…

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A: Tax: It is the amount that is paid for the services the government has rendered to the public. It is…

Q: Greg is single. During 2020, he received $60,000 of salary from his employer. That was his only…

A: Salary: Its a compensation to be paid to employees for contributing their time and providing…

Q: Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000…

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A: Long term capital gain above $ 80000 = 125000 - 80000 = $ 45000

Q: What is the amount and character of Enzo's gain or loss?

A: Compute the net capital gain.

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.