Question
Henry, a single taxpayer with a marginal tax rate of 35 percent (taxable income is $300,000 before considering any of the items below), sold all
Henry, a single taxpayer with a marginal tax rate of 35 percent (taxable income is $300,000 before considering any of the items below), | |||||||||
sold all of the following assets during the year: | |||||||||
Holding | Applicable | ||||||||
Asset | Sale Price | Tax Basis | Period | Rate | Explanation | ||||
FGH Stock | 45000 | 22500 | More than one year | ||||||
ERT Stock | 12000 | 8500 | Less than one year | ||||||
Baseball card collection | 9500 | 5500 | More than one year | ||||||
HHH Stock | 11000 | 15500 | Less than one year | ||||||
Rental residence* | 100000 | 55000 | More than one year | ||||||
*$25,000 of the gain is a 25 percent gain. The remaining gain is 0/15/20 percent gain. | |||||||||
What tax rate(s) will apply to each of Henry's capital gains or losses? |
***Assume it is year 2020 and Henry resides in the U.S***
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