* More Info and her taxable income is $120,000 without considering the following sales. (Click the icon to view additional information.) (Click the icon to view the capital gains and dividends rates.) (Click to view the tax rates table.) Asset #1$15,000 gain and holding period of 20 months Asset #2$17,000 loss and holding period of 25 months Asset #3$5,000 gain and holding period of 13 months Read the requirements. Requirement a. What is the increase in her taxes as a result of the three sales? Print Done Her taxes will increase by $ 450 Requirement b. If the holding period for Asset #2 is nine months, what is decrease in xes as a result of three sales? Her taxes will decrease by %, resulting in tax of The net Sec. 1231 gain is taxed at and her tax is reduced by The loss can be carried forward The loss is a capital loss The loss is an ordinary loss 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 2020) 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: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $40,000 Up to $80,000 Up to $53,600 15% > $40,000 but not over $441,450 > $80,000 but not over $496,600 > $53,600 but not over $469,050 20% Over $441,450 Over $496,600 Over $469,050 * 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 $40,000 if married filing separately. If taxable income is: Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is: 10% of taxable income. $987.50 + 12% of the excess over $9,875. $4,617.50 + 22% of the excess over $40,125. . $14,605.50 + 24% of the excess over $85,525. .. $33,271.50 + 32% of the excess over $163,300. . $47,367.50 + 35% of the excess over $207,350. $156,235.00 + 37% of the excess over $518,400. * More Info and her taxable income is $120,000 without considering the following sales. (Click the icon to view additional information.) (Click the icon to view the capital gains and dividends rates.) (Click to view the tax rates table.) Asset #1$15,000 gain and holding period of 20 months Asset #2$17,000 loss and holding period of 25 months Asset #3$5,000 gain and holding period of 13 months Read the requirements. Requirement a. What is the increase in her taxes as a result of the three sales? Print Done Her taxes will increase by $ 450 Requirement b. If the holding period for Asset #2 is nine months, what is decrease in xes as a result of three sales? Her taxes will decrease by %, resulting in tax of The net Sec. 1231 gain is taxed at and her tax is reduced by The loss can be carried forward The loss is a capital loss The loss is an ordinary loss 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 2020) 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: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $40,000 Up to $80,000 Up to $53,600 15% > $40,000 but not over $441,450 > $80,000 but not over $496,600 > $53,600 but not over $469,050 20% Over $441,450 Over $496,600 Over $469,050 * 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 $40,000 if married filing separately. If taxable income is: Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85,525 Over $85,525 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is: 10% of taxable income. $987.50 + 12% of the excess over $9,875. $4,617.50 + 22% of the excess over $40,125. . $14,605.50 + 24% of the excess over $85,525. .. $33,271.50 + 32% of the excess over $163,300. . $47,367.50 + 35% of the excess over $207,350. $156,235.00 + 37% of the excess over $518,400