Unmarried taxpayer without a dependent has $100,000 of gross income eligible for the capital gain rate and $450,000 of Gross Income not eligible for the capital gain rate.

Question 4.a.what is the income tax on the capital gain income (expressed as a $ amount)?

Answer:

To compute the income tax on the capital gain income for an unmarried taxpayer without a dependent who has $100,000 of gross income eligible for the capital gain rate, we need to consider the long-term capital gains tax rates for the 2023 tax year. The applicable tax rates and breakpoints for Single filers are as follows:

• 0% rate: $0 to $44,625
• 15% rate: $44,626 to $492,300
• 20% rate: Over $492,300