Problem 6

# Problem 6 - 1 Arnold is in the 25 tax bracket for his...

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1. Arnold is in the 25% tax bracket for his regular income. He has the following during the year: LTCG (long term capital gain): \$20,000 LTCL (long term capital loss): \$12,000 STCG (short term capital gain): \$24,000 STCL (short term capital loss): \$9,000 How much tax will he owe on his capital gain/loss transactions? 2. Alex is in the 25% tax bracket for his regular income. He has the following during the year: LTCG (long term capital gain): \$20,000 LTCL (long term capital loss): \$12,000 STCG (short term capital gain): \$2,000 STCL (short term capital loss): \$9,000 How much tax will he owe on his capital gain/loss transactions? 3. Andy is in the 25% bracket for his regular income. He has the following during the year: LTCG (long term capital gain): \$13,000 LTCL (long term capital loss): \$12,000 STCG (short term capital gain): \$4,000 STCL (short term capital loss): \$9,000 4. Maureen and Ed are married. After living in their home for 13 years, they sold it for a gain of \$725,000. (a) How much of their gain is taxable? (ANS: Only \$225,000 due to the \$500,000 exclusion.)

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Problem 6 - 1 Arnold is in the 25 tax bracket for his...

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