USA -TAX Year 2019

1. Karen Thomas is single and has one dependent. She works as a clerk for the district judge and earns $67,000 a year. She does not itemize deductions. Other than salary, the 3. Karens only other source of income is from the disposition of shares of stock.

a. What is Karens tax liability for the current tax year if she reports the following capital gains and losses for the year?

Short-term capital gains $12,000

Short-term capital losses ($2,000)

Long-term capital gains $16,500

Long-term capital losses ($3,000)

b. What is Karens tax liability for the current tax year if she reports the following capital gains and losses for the year? Assume her salary is $47,000.

Short-term capital gains $12,000

Short-term capital losses ($2,000)

Long-term capital gains $16,500

Long-term capital losses ($3,000)

c. What is Karens tax liability for the current tax year if she reports the following capital gains and losses for the year? Assume her salary is $47,000

Short-term capital gains $1,500

Short-term capital losses $0

Long-term capital gains $15,000

Long-term capital losses ($10,000)