Question
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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