Bill and Betty are in the

37%

tax bracket for ordinary income and the

20%

bracket for capital gains (ignore the

3.8%

additional tax on investment income for higher-income taxpayers.) They have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one block would produce a gain of

$8,000

. The sale of the other would produce a loss of

$13,000

. For purposes of this problem, ignore any restrictions on deductions or credits based on AGI. They have no other gains or losses this year.

Bill and Betty are in the 37% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $8,000. The sale of the other would produce a loss of $13,000. For purposes of this problem, ignore any restrictions on deductions or credits based on AGI. They have no other gains or losses this year. Bill and Betty are in the 37% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $8,000. The sale of the other would produce a loss of $13,000. For purposes of this problem, ignore any restrictions on deductions or credits based on AGI. They have no other gains or losses this year