An individual in the 28

An individual in the 28 - Cost basis of stock Proceeds of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
a) An individual in the 28% federal income tax bracket and 15% long-term capital gains tax bracket brought and sold the following securities during the year: Cost basis of stock Proceeds of sale ABC $24,500 $28,600 = $4,100 gain DEF $35,400 $31,000 = $4,400 loss GHI $31,000 $36,000 = $5,000 gain $4,700 gain What are the taxes owned on the short term proceeds? $4,700 x 28% = $1,316 additional taxes owed b) An individual in the 35% federal income tax bracket and 15% long-term capital gains tax bracket brought and sold the following securities during the year:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Cost basis of stock Proceeds of sale ABC $34,600 $28,600 = $6,000 loss DEF $29,400 $31,000 = $1,600 gain GHI $21,500 $19,000 = $2,500 loss $6,900 loss What are the taxes owned or saved as a result of these sales? There is a $6,900 loss, however only $3,000 of that loss may be used to offset income and the rest is a carry over to the next year. Therefore, the $3,000 loss will result in a $1,050 tax savings; $3,000 x 35%...
View Full Document

This note was uploaded on 04/01/2012 for the course FINC 354 taught by Professor Gibbons-cobb during the Spring '12 term at Columbia College.

Ask a homework question - tutors are online