Maya expects to report about $2 million of AGI and $1.7 million of taxable income.Her AGI is composed of $1.25 million of salary,and the balance is investment income.Maya is thinking about selling some stock before year-end.She purchased the stock three years ago and expects to recognize a $500,000 gain.How much federal tax will she pay in total on the stock gain?

Question

Quizplus · Accepted Answer

A)The gain will be subject to the 20% income tax rate on the LTCG and the 3.8% Medicare tax on investment income.$500,000 × 23.8% = $119,000.

Maya Expects to Report About $2 Million of AGI and $1.7