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Unformatted text preview: is taxed at 0% and some is taxed at 15%. The total tax is $1,468 ($800 tax on $8,000 regular taxable income + $0 tax on $37,550 of long-term capital gain (0%) + $668 tax on the remaining $4,450 of long-term capital gain(15%)). 2. ANS: C Saras taxable income does not take her out of the 15% regular tax bracket. Therefore, her $3,000 0%/15% long-term capital gain is taxed at 0%, but her 25% gain is taxed at the regular tax rate since that is lower than 25%. Her tax on taxable income is $3,003 (the tax on $14,000 regular taxable income plus $10,000 25% net long-term capital gain at regular tax rates)....
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- Spring '11