In December,2013,Ben and Jeri married,filing jointly)have a long-term capital gain of $55,000 on the sale of stock held for 4 years.They have no other capital gains and losses for the year.After standard deduction and personal exemptions,their ordinary income for the year,before the capital gain,is $72,500,making their total income for the year $127,500,$72,500 + $55,000).In 2013,married taxpayers pay tax of $9,983 at 10 percent and 15 percent rates from the tax table)on the first $72,500 of ordinary taxable income and 25 percent on ordinary taxable income up to $146,400.What is their total tax liability?

Question

Quizplus · Accepted Answer

The ordinary income tax is $9,983 on $72,500. The capital gain of $55,000 is taxed at 15% for married filing jointly in 2013, resulting in $8,250. Total tax liability is $9,983 + $8,250 = $18,233.

In December,2013,Ben and Jeri Married,filing Jointly)have a Long-Term Capital Gain