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2) Henry, a single taxpayer with a marginal tax rate of 35 percent (taxable income is $300,000 before considering any of the items below), sold

2) Henry, a single taxpayer with a marginal tax rate of 35 percent (taxable income is $300,000 before considering any of the items below), sold the following assets during the year:

Asset

Sale Price

Tax Basis

Gain/Loss

Holding Period

ABC Stock

$

50,000

$

25,000

$

25,000

More than 1 Year

XYZ Stock

$

12,000

$

9,000

$

3,000

Less than 1 Year

Stamp Collection

$

10,000

$

5,000

$

5,000

More than 1 Year

RST Stock

$

13,000

$

19,000

$

(6,000

)

Less than 1 Year

Rental Home

$

100,000

$

50,000

*

$

50,000

More than 1 Year

*$25,000 of the gain is a 25 percent gain. The remaining gain is 0/15/20 percent gain.

What tax rate(s) will apply to Henry's capital gains or losses?

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