Amanda,whose tax rate is 33%,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

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B)The $25,000 NSTCL is offset against the $25,000 of the collectibles gain in the 28% group.Amanda's tax liability increases by $4,100 [($5,000 × .28)+ ($18,000 × .15)].

Amanda,whose Tax Rate Is 33%,has NSTCL of $25,000,a $30,000 LTCG