Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $10,000 on each. If Samuel is single and has taxable income of $40,000, what will be the amount of capital gains tax on each investment? See Capital Gains table and Taxable income rate table. Investment 1: held 13 months: whats the capital gains tax? Investment 2: held 2 months: Whats the capital gains tax?
Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $10,000 on each. If Samuel is single and has taxable income of $40,000, what will be the amount of capital gains tax on each investment? See Capital Gains table and Taxable income rate table. Investment 1: held 13 months: whats the capital gains tax? Investment 2: held 2 months: Whats the capital gains tax?
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 5BCRQ
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Question
Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investments and has a
Investment 1: held 13 months: whats the capital gains tax?
Investment 2: held 2 months: Whats the capital gains tax?
Transcribed Image Text:Married
Rate on Taxable
Single
Taxpayers
Income
Тахраyers
Filing Jointly
Head of Households
10%
Up to $9,525
Up to $19,050
Up to $13,600
12
$9,525-$38,700
$19,050-$77,400
$13,600-$51,800
22
$38,700-$82,500
$77,400-$165,000
$51,800-$82,500
24
$82,500-$157,500 $165,000-$315,000
$82,500-$157,500
33
$157,500-$200,000 $315,000-$400,000 $157,500-$200,000
35
$200,000-$500,000 $400,000-$600,000 $200,000-$500,000
37
$500,000+
$600,000+
$500,000+
Transcribed Image Text:Capital Gain Tax Rate
Single
Married Filing Jointly
0%
Up to $38,60O
Up to $77,200
15%
$38,600-$425,800
$77,200-$479,000
20%
Over $425,800
Over $469,000
Expert Solution
Step 1
Investment 1 - made 13 months ago -
The tax rate for long-term capital gains for taxable income of $40,000 is 15%, so capital gain tax amount is : $10,000 x 15% = $1500
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