Jack Spratt has an investment that gives him $1,000 per year in interest income. His friend Peter
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Jack Spratt has an investment that gives him $1,000 per year in interest income. His friend Peter Pumpkineater has been telling Jack that he should invest in something that provides him with capital gains instead of interest. This year, for example, Peter sold some shares of a mutual fund (which he had held for more than one year) for a $1,000 profit. Assuming that Jack and Peter are both in the top marginal tax bracket (35 percent), how much difference did the type of income they received from these two investments make to the taxes owed on the income?
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Related Book For
Wiley Pathways Personal Finance Managing Your Money And Building Wealth
ISBN: 978-0470111239
1st Edition
Authors: Vickie L. Bajtelsmit, Linda Rastelli
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