Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2022.

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Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2022. She is considering the sale of a Sec. 1231 asset held for four years at a $5,000 gain in 2022. She had not recognized any Sec. 1231 losses during the previous five years and does not expect to have any other Sec. 1231 transactions in 2022. Her marginal tax rate for 2022 is 32%. What is the amount of increase in her 2022 taxes if Holly recognizes the $5,000 Sec. 1231 gain in 2022?

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Pearsons Federal Taxation 2023 Comprehensive

ISBN: 9780137840656

36th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse

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