4. Paying taxes on stocks What It Means to Invest in Stocks? stock in the form of dividends and/or capital gains. As an investor it is important to understand the implications of investing in stocks from a tax perspective. Two years ago, Manuel purchased 100 shares of a particular company's stock at a price of $66.85 per share. Last year anuel dividend of $1.21 per share and afterward sold all 100 shares at a price of $80.09 per share. In the first column of the following table, enter the total annual dividends Manuel received each year, as well as the total capital gains at the end of each year. Suppose Manuel is in the 35% tax bracket. Compute the taxes Manuel pays each year on dividends and capital gains from this investment by completing the second column in the table. Calculating Taxes Owed on Manuel's Investment The total amount of investment income (pre taxes) that Manuel earned on this investment over the course of 2 years is The total amount that Manuel pays in taxes on income from this investment income is 4. Paying taxes on stocks What It Means to Invest in Stocks? stock in the form of dividends and/or capital gains. As an investor it is important to understand the implications of investing in stocks from a tax perspective. Two years ago, Manuel purchased 100 shares of a particular company's stock at a price of $66.85 per share. Last year anuel dividend of $1.21 per share and afterward sold all 100 shares at a price of $80.09 per share. In the first column of the following table, enter the total annual dividends Manuel received each year, as well as the total capital gains at the end of each year. Suppose Manuel is in the 35% tax bracket. Compute the taxes Manuel pays each year on dividends and capital gains from this investment by completing the second column in the table. Calculating Taxes Owed on Manuel's Investment The total amount of investment income (pre taxes) that Manuel earned on this investment over the course of 2 years is The total amount that Manuel pays in taxes on income from this investment income is