Abby, a single taxpayer, purchased 10,000 shares of 5 1244 stock several years ago at a cost of $20 per share. In November of the current year, Abby received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. Abby will receive a salary of $80,000 for the current year and $90,000 next year. Abby will have long-term capital gains of $8,000 for the current year and $10,000 next year, If Abby's goal is to minimize her AG! for the two years, determine whether she should sell all of her stock this year or half of her stock this year and half next year a. Determine Abby's total AGI under both options for the current year and next year. If an amount is zero, enter "o". Sell all of the stock this year: Current year's AGI $80,000 Salary Long-term capital gain Less: Equals: Adjusted gross income 390,000 Next year's AGI Previous Salary Lalculator Sell all of the stock this year: Current year's AGI Salary Long-term capital gain $8,000 Less: Equals: Adjusted gross income Next year's AGI Salary $10.000 Long-term capital gain Less Equals: Adjusted gross income Total AGI Current year Previous DOOR Calculator Adjusted gross income Total AGI Current year Next year Total Sell half of the stock this year and half next year: Current year's AGI Salary $80,000 $8,000 Long-term capital gain Less: Equals: Adjusted gross income Next year's AGI $90,000 Salary $10,000 Long-term capital gain Previous Less Save and it Submit Assignment for Grading Check My Work Email Instructor All work saved 10:30 AM 014/2019 A ABA Less Equals: Adjusted gross income Next year's AGI Salary $10,000 Long-term capital gain Less Adjusted gross income Total AGI Current year Next year Total b. Which option will result in the best overall tax consequence for Abby? Previous Submit Anment for Grading Save and Exit Email Instructor 10:38 AM Check My Work 140019 A work saved Abby, a single taxpayer, purchased 10,000 shares of 5 1244 stock several years ago at a cost of $20 per share. In November of the current year, Abby received an offer to sell the stock for $12 per share. She has the option of either selling all of the stock now or selling half of the stock now and half of the stock in January of next year. Abby will receive a salary of $80,000 for the current year and $90,000 next year. Abby will have long-term capital gains of $8,000 for the current year and $10,000 next year, If Abby's goal is to minimize her AG! for the two years, determine whether she should sell all of her stock this year or half of her stock this year and half next year a. Determine Abby's total AGI under both options for the current year and next year. If an amount is zero, enter "o". Sell all of the stock this year: Current year's AGI $80,000 Salary Long-term capital gain Less: Equals: Adjusted gross income 390,000 Next year's AGI Previous Salary Lalculator Sell all of the stock this year: Current year's AGI Salary Long-term capital gain $8,000 Less: Equals: Adjusted gross income Next year's AGI Salary $10.000 Long-term capital gain Less Equals: Adjusted gross income Total AGI Current year Previous DOOR Calculator Adjusted gross income Total AGI Current year Next year Total Sell half of the stock this year and half next year: Current year's AGI Salary $80,000 $8,000 Long-term capital gain Less: Equals: Adjusted gross income Next year's AGI $90,000 Salary $10,000 Long-term capital gain Previous Less Save and it Submit Assignment for Grading Check My Work Email Instructor All work saved 10:30 AM 014/2019 A ABA Less Equals: Adjusted gross income Next year's AGI Salary $10,000 Long-term capital gain Less Adjusted gross income Total AGI Current year Next year Total b. Which option will result in the best overall tax consequence for Abby? Previous Submit Anment for Grading Save and Exit Email Instructor 10:38 AM Check My Work 140019 A work saved
