An investor is in the 33

An investor is in the 33 - Short term capital gain: $3,000...

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An investor is in the 33% tax bracket and pays long-term capital gains taxes of 15%. What are the taxes owed (or saved in the cases of losses) in the current tax year for each of the following situations? a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000 Short term capital gains: $3,000 x .33 = $990 Long term capital gains: $4,000 x .15 = $600 Total additional tax: $1,590 b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000 Long term capital loss: $4,000 Short term capital gain: -$3,000 $1,000 long term loss x .33 Total tax savings: $330 c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000 Long term capital gain: $4,000 Short-term capital loss: -$3,000 $1,000 long term gain x .15 Total additional tax: $150 d) Net short-term capital gains of $3,000; net long-term capital losses of $2,000
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Unformatted text preview: Short term capital gain: $3,000 Long term capital loss: $2,000 $1,000 short term gain x .33 Total additional tax: $330 e) Net short-term capital losses of $4,000; net long-term capital gains of $3,000 Short term capital loss: $4,000 Long term capital gain: $3,000 $1,000 short term loss x .33 Total tax saving: $330 f) Net short-term capital losses of $1,000; net long-term capital losses of $1,500 Long term capital loss: $1,500 Short term capital loss: $1,000 $2,500 long term capital loss x .33 Total tax saving: $828 g) Net short-term capital losses of $3,000; net long-term capital losses of $2,000 Short term capital loss: $3,000 Long term capital loss: $2,000 $5,000 net loss Since we are limited to $3,000 loss each year, total tax saving: $990....
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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.

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