Question: You purchase a REIT for $50. It distributes $3 consisting of $1 in income, $0.50 in long-term capital gains, $0.30 in short-term capital gains, and
You purchase a REIT for $50. It distributes $3 consisting of $1 in income, $0.50 in long-term capital gains, $0.30 in short-term capital gains, and $1.20 in return of capital. After a year, you sell the stock for $56. If you are in the 30 percent income tax bracket and 15 precent long-term capital gains bracket, what are your taxes owed?
The answer from the textbook: $1.545
I've been attempting the problem for a few hours, but can't come up with that as an answer.
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