Question
jen bought 100 shares oF ABC stock at$15 a share on July 14,2017.On August 7, 2018 .She noticed that the stock had increased in value
jen bought 100 shares oF ABC stock at$15 a share on July 14,2017.On August 7, 2018 .She noticed that the stock had increased in value to $20 a share and decided to sell her shares .Jen marginal tax rate is 22%.How is the revenue from the sale treated on her 2018 income tax return.
A)her AGI will increase by $2000 and this $2000 will be taxed at her reqular marginal tax rate 22%
B)her AGI will increase by $500 and this $500 will be taxed at her reqular marginal tax rate 22%
C)her AGI will increase by $2000 and this $2000 will be taxed at A capital gain rate of 20%
D)her AGI will increase by $500 and this $500 will be taxed at A Capital gain rate of 15%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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