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b. What is Grayson's net long-term gain or loss from these transactions? Net long-term capital gain or loss c. What is Grayson's overall net gain or loss from these transactions? Net capital gain or loss d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains? Amount 2018 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household If taxable Income is over: If taxable Income is over: But not But not The tax is: The tax is: over: over: 0 $ 9,525 10% of taxable income $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% of the excess over $38,700 $14,089.50 plus 24% of the excess over $82,500 $32,089.50 plus 32% of the excess over $157,500 $45,689.50 plus 35% of the excess over $200,000 $150,689.50 plus 37% of the excess over $500,000 0 $ 1 3,600 $ 9,525 $ 38,700 $ 82,500 $157.500 $200,000 500,000 $.38,700 $ 82,500 $157,500 $200.000 $500,000 $. 13,600 $ 51.800 $ 82,500 $157.500 $200,000 $500,000 $ 51,800 $ 82.500 $157,500 $200.000 $500,000 10% of taxable income $1,360 plus 12% of the excess over $13,600 $5,944 plus 22% of the excess over $51,800 $ 12,698 Plus 24% of the excess over $82,500 $30,698 Plus 32% of the excess over $157,500 $44,298 plus 35% of the excess over $200,000 $149,298 plus 37% of the excess over $500,000 - Schedule Y-1-Married Filing Jolntly or Qualifying Widow(er) Schedule Y-2-Married Fling Separately If taxable income is over: But not If taxable income is over: But not over: The tax is: over: The tax is: 0 $ 9,525 10% of taxable income $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% of the excess over $38,700 $14,089.50 plus 24% of the excess over $82,500 $32,089.50 plus 32% of the excess over $157.500 $45,689.50 plus 35% of the excess over $200,000 $80,689.50 ous 37% of the excess over $300,000 0 $. 1 9,050 $. 19,050 $. 77,400 $165,000 $315,000 $400,000 $600,000 $. 77,400 $165,000 $315,000 $400,000 $600,000 10% of taxable income $1,905 plus 12% of the excess over $19.050 $8,907 plus 22% of the excess over $77,400 $28,179 plus 24% of the excess over $165,000 $64,179 plus 32% of the excess over $315,000 $91,379 plus 35% of the excess over $400,000 $161,379 plus 37% of the excess over $600,000 $ 9,525 $. 38,700 $. 82,500 $157,500 $200,000 $300,000 $38,700 $ 82,500 $157,500 $200,000 $300,000 - Tax Rates for Net Capital Gains and Qualified Dividends Rate Taxable Income Married Filing Jointly Married Filing Separately Single Head of Trusts and Household Estates 0% 15% | $77.201-$479.000 | $38.601-$239.500 | $38.601-$425.800 | $51.701-$452.400 | $2.601-$12.700 20% SO - $77,200 SO - $38,600 SO - $38,600 SO - $51.700 $O - $2,600 $479,000+ $239,500+ $425,801+ $452.401+ $12.701+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose)

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