Kirby is in the 15% tax bracket and had the following capital asset transactions during 2011: Kirby's tax consequences from these gains are as follows:

Question

Kirby is in the 15% tax bracket and had the following capital asset transactions during 2011:  Kirby's tax consequences from these gains are as follows:

Quizplus · Accepted Answer

Kirby will not owe capital gains tax on the sale of the stock held for over a year because he is in the 15% tax bracket and his long-term capital gains rate is 0%. Therefore, he will only owe taxes on the sale of the stock held for less than a year, which is $13,000. Since he is in the 15% tax bracket, his short-term capital gains tax will be (15% x $13,000) = $1,950. So, the correct answer is (0% x $10,000) + (15% x $13,000) = $1,950.

Kirby Is in the 15% Tax Bracket and Had the Following