Calculate an individual's tax liability if a stock purchase was $500,000 and after a year the value of the stock was $600,000 The ordinary income tax rate for the person is 24% and the long term capital gains rate is 20%. a. The stock was held for a year so the capital gains tax applies. The capital gain was $100,000 @20% = $20,000 b. There is no tax because the value of the stock went up but the stock wasn't sold. The gain was not "realized." The individual has to pay 24% of the value of the stock whenever it's sold. The tax will be $600,000 @24% - $144,000 sometime in the future. The stock was held for a year but the individual has salary income as well so the tax rate is 24%. $100,000 @24% = $24,000