Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Henrich is a single taxpayer. In 2021, his taxable income is $451,000. What is his income tax and net investment income tax liability in
Henrich is a single taxpayer. In 2021, his taxable income is $451,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.) b. His $451,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates. Answer is complete but not entirely correct. Amount Income tax $131,694.25 Net investment income tax 400 Total tax liability $132,094.25 c. His $451,000 of taxable income includes $41,000 of long-term capital gain that is taxed at preferential rates. X Answer is complete but not entirely correct. Amount Income tax $ 118,044.25 X Net investment income tax 8,200.00 Total tax liability $ 126,244.25 d. Henrich has $195,500 of taxable income, which includes $50,200 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000. Answer is complete but not entirely correct. Amount Income tax 28,893.00 X Net investment income tax 7,530.00 X Total tax liability $ 36,423.00 Henrich is a single taxpayer. In 2021, his taxable income is $451,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.) b. His $451,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates. Answer is complete but not entirely correct. Amount Income tax $131,694.25 Net investment income tax 400 Total tax liability $132,094.25 c. His $451,000 of taxable income includes $41,000 of long-term capital gain that is taxed at preferential rates. X Answer is complete but not entirely correct. Amount Income tax $ 118,044.25 X Net investment income tax 8,200.00 Total tax liability $ 126,244.25 d. Henrich has $195,500 of taxable income, which includes $50,200 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000. Answer is complete but not entirely correct. Amount Income tax 28,893.00 X Net investment income tax 7,530.00 X Total tax liability $ 36,423.00
Step by Step Solution
★★★★★
3.42 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
here the taxable income is in 2020 and tax filing is done in 2021 a Particulars Amount Explanation 1 Taxable income 451000 2 Preferentially taxed inco...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started