Amanda,whose tax rate is 32%,has NSTCL of $25,000,a $30,000 LTCG from sale of a rare coin held 15 months and a $18,000 LTCG from the sale of stock held for three years.By what amount will Amanda's tax liability increase?

Question

Quizplus · Accepted Answer

Amanda's NSTCL of $25,000 offsets her LTCG. The remaining LTCG is $23,000 ($30,000 + $18,000 - $25,000). The tax rate on LTCG is 15%, so her tax liability increases by $3,450 ($23,000 * 0.15).

Amanda,whose Tax Rate Is 32%,has NSTCL of $25,000,a $30,000 LTCG