Social Security Benefits Practice

In 2019, Evelyn is age 66 and unmarried. She receives $14,000 in social security benefits and $16,000 in taxable pension. She is in the 12% tax bracket and takes the standard deduction. She is thinking of selling stock she bought in 2006 and paid $5,000 for. The fair market value of the stock is $13,000. She has no other gains or losses.

Calculate and classify the gain or loss if Evelyn sells her stock in 2019.

Calculate any difference in her tax liability if Evelyn sells her stock in 2019.