Question
Tom and Laura are in the 39.6% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on
Tom and Laura are in the 39.6% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They Have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $10,000. The sale of the other would produce a loss of $15,000. For purposes of this problem, ignore personal exemptions, itemised deductions and other phase-outs. They have no other gains or losses this year.
Required:
What will be the impact on their taxes if they sell both blocks of stock?
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Sale of one Block 10000 Sale of second Block 15000 Net Capital Loss 5000 3000 should be adjusted aga...Get Instant Access to Expert-Tailored Solutions
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