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Below is a table with four different scenarios for a taxpayer who opts to sell several different types of stock throughout the year. Assume that

Below is a table with four different scenarios for a taxpayer who opts to sell several different types of stock throughout the year. Assume that all ordinary income for the taxpayer is taxed at a flat tax rate of 22%. In contrast, his long-term capital gains tax rate is 15%. His only income outside the transactions with the stock is $100,000 or ordinary income from his salary.( YEAR 2023)

Scenario 1 Scenario 2 Scenario 3 Scenario 4
ST capital gain $4,000 $4,000 $4,000
ST capital loss $7,000 $7,000 $10,000
LT capital gain $9,000 $9,000 $9,000
LT capital loss $5,000 $5,000 $5,000

Fill in the blank:

  1. The total amount of taxes saved during the current year because of the capital losses in Scenario 1 is $_______.
  2. The additional amount of tax due the taxpayer must pay in total this year because of short-term capital gains in Scenario 2 is $_______.
  3. The additional amount of tax due the taxpayer must pay in total this year because of the long-term capital gains in Scenario 2 is $_______.
  4. The total change in tax due for the taxpayer because of the gains and losses in Scenario 3 is $_______.
  5. The total change in tax due for the taxpayer because of the gains and losses in Scenario 4 is $_______.

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