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Henry is a single taxpayer with a marginal tax rate of 35%. His taxable income is $300,000 before considering any of the items below. He
Henry is a single taxpayer with a marginal tax rate of 35%. His taxable income is $300,000 before considering any of the items below. He sold the following assets during the year: Asset Sale Price Tax Basis Gain/Loss Holding Period ABC Stock $ 50,000 $ 25,000 $ 25,000 More than One Year XYZ Stock $ 12,000 $ 9,000 $ 3,000 Less than One Year Stamp Collection $ 10,000 $ 5,000 $ 5,000 More than One Year RST Stock $ 13,000 $ 19,000 $ (6,000) Less than One Year Rental Home $ 100,000 $ 50,000 $ 50,000 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 rates will apply to Henry's capital gains or losses? 1. Amount of capital gain or loss taxed at 35% 2. Amount of capital gain or loss taxed at 28% 3. Amount of capital gain or loss taxed at 25% 4. Amount of capital gain or loss taxed at 0/15/20%
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