Nate sold two securities in 2016: $\begin{array}{|l|c|c|r|r|}
\hline& \text { Purchased } &{\text { Sold }} & \text { Sales Price } &{\text { Basis }} \
\hline \text { MASH } & 1-1-2015 & 5-10-2016 & \$ 12,000 & \$ 10,000 \
\hline \text { KMZ } & 12-2-2015 & 9-22-2016 & \$ 4,000 & \$ 5,000\\hline
\end{array}$ Nate has a 25% marginal tax rate. What is the additional tax resulting from the above sales?

Question

Nate sold two securities in 2016: $\begin{array}{|l|c|c|r|r|} 
\hline& \text { Purchased } &{\text { Sold }} & \text { Sales Price } &{\text { Basis }} \
\hline \text { MASH } & 1-1-2015 & 5-10-2016 & \$ 12,000 & \$ 10,000 \
\hline \text { KMZ } & 12-2-2015 & 9-22-2016 & \$ 4,000 & \$ 5,000\\hline
\end{array}$ Nate has a 25% marginal tax rate. What is the additional tax resulting from the above sales?

Quizplus · Accepted Answer

Nate has a long-term capital gain of $2,000 from MASH and a short-term capital loss of $1,000 from KMZ. The net capital gain is $1,000, taxed at the long-term capital gains rate of 15%, resulting in $150 additional tax.

Nate Sold Two Securities in 2016 Nate Has a 25% Marginal Tax Rate