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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

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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 includble Sec 1202 gains - Preferential tax rates for gains on assets held for more than one year and qualfied dividends based on the taxpayer's taxable income and filing status as shown in the following table: Preferencial. Ine corresponding amounts if married filing separately ate half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $41.675 if married filing sepatately. Single Tax Rate Schedule Josh inherita stock (a capital asset) from his brother, who died in March of 2022, when the property had a $7.5 million fair market value (FMV) This property is the only property included in his brother's gross estate and there is a taxable estate. The FMV of the property as of the alternate valuation date was $7.4 million. View the Preferentlal Rates for Adivgtod Net Carial Gain. (ANCG) and Qualifind. Dividends. Viewithe 2022 tax rate schedule for the Single fing status. (Read Thereguidements) Requirement a. Why might the executor of the brother's estate elect to use the alternate valuation date to value the property? (Enter your answer in whiole dollars) The executor of the brother's estate may elect the alternative valuntion date to value the property because would be less and the Requirements a. Why might the executor of the brother's estate elect to use the alternate valuation date to value the property? b. Why might Josh prefer the executor to use FMV at time of the death to value the property? c. If the marginal estate tax rate is 40% and Josh's marginal income tax rate is 32% and his rate on adjusted net capital gain (ANCG) is 15%, which value should the executor use? (Assume that Josh is a single taxpayer.)

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