You are in the 33% marginal tax rate. The stock you purchased at the beginning of...

80.2K

Verified Solution

Question

Finance

You are in the 33% marginal tax rate. The stock you purchased atthe beginning of the year has increased in value by $27,000.
a. If you sell the stock today, your capital gain will beclassified as short-term. At what rate would you be taxed, and whatwould be your tax liability?
Tax rate %
Tax liability$8910
b. If you waited a month, your capital gain would be classifiedas long-term. At what rate would you be taxed, and what would beyour tax liability given this scenario?
Tax rate %
Tax liability $
c. You earned a salary of $179,000, had interest income of $600,and dividend income of $600, and you experienced the short-termcapital gain described in 4(a). What is your gross income?
Gross income $
d. You made a traditional IRA contribution of $2,000 and paid$500 in student loan interest. What is your adjusted gross income(AGI) based on the gross income described in 4(c)?
AGI $

Answer & Explanation Solved by verified expert

4.2 Ratings (839 Votes)

A Short term capital gain In case you hold your assets for less than one year you will be charged at normal rate of tax ie marginal tax rate applies Tax rate will be 33 Tax Liability will be 8910 B See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member