Alex Del Piero is a professor at La Sapienza University. The taxable income for salaries of up to €15,000 is 23%, while interest, dividends (for non-substantial participation), and capital gains (realized or unrealized) are subject to a 26% tax rate. The tax is not calculated on a universal income basis. In 2019, he had the following taxable income:
1. €13,000 from salary (ordinary income)
2. €1,000 in interest income
3. €500 in dividend income
4. €200 in capital gains from sale of a stock he purchased a year ago
5. €300 in capital gains from a stock which he still holds
Use the data above to work this problem and answer the following questions:
a. How much will Alex pay in income taxes on item 1 above?
b. How much will Alex pay in income taxes on item 2 above?
c. How much will Alex pay in income taxes on item 3 above?
d. How much will Alex pay in income taxes on items 4 and 5 above?