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Keira, who is single and has taxable income of $380,000, sells the following capital assets in 2022 with gains and losses as shown: View the
Keira, who is single and has taxable income of $380,000, sells the following capital assets in 2022 with gains and losses as shown: View the capital assets. View the 2022 tax rate schedule for the Single filing status. View the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends. Read the requirements. Increase in tax liability for Adjusted Net Capital Gain (ANCG) and Qualified Dividends. Capital Assets Keira's increase i d for investment. I Single Tax Rate Schedule Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: - Ordinary income tax rates (up to 37% in 2022) for gains on assets held one year or less - 28% rate on collectibles gains and includible Sec. 1202 gains - Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $41,675 if married filing separately. Requirements a. Determine Keira's increase in income tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phaseout amounts. b. Determine her increase in income tax liability if the holding period for asset B is 8 months. c. Determine her increase in income tax liability if the holding periods are the same as in Part a but asset B is an antique clock. d. Determine her increase in income tax liability if her taxable income is $470,000
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