Question
Henrich is a single taxpayer. In 2021, his taxable income is $454,000. What is his income tax and net investment income tax liability in each
Henrich is a single taxpayer. In 2021, his taxable income is $454,000. 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 $454,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.
income tax:
Net investment income tax:
Total tax liability:
c. His $454,000 of taxable income includes $47,000 of long-term capital gain that is taxed at preferential rates.
Income tax:
Net investment income tax: 1,786
Total tax liability:
d. Henrich has $197,000 of taxable income, which includes $50,800 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.
Income tax:
Net investment income tax: 380
Total tax liability:
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