Nate sold two securities in 2019: $$\begin{array} { | l | c | c | r | r | }
\hline & \text { Purchased } & { \text { Sold } } & \text { Sales Price } &{ \text { Basis } } \
\hline \text { MASH } & 1 - 1 - 2018 & 5 - 10 - 2019 & \$ 12,000 & \$ 10,000 \
\hline \text { KMZ } & 12 - 2 - 2018 & 9 - 22 - 2019 & \$ 4,000 & \$ 5,000 \
\hline
\end{array}$$ Nate has a 24% marginal tax rate.What is the additional tax resulting from the above sales?

Question

Nate sold two securities in 2019: $$\begin{array} { | l | c | c | r | r | } 
\hline & \text { Purchased } & { \text { Sold } } & \text { Sales Price } &{ \text { Basis } } \
\hline \text { MASH } & 1 - 1 - 2018 & 5 - 10 - 2019 & \$ 12,000 & \$ 10,000 \
\hline \text { KMZ } & 12 - 2 - 2018 & 9 - 22 - 2019 & \$ 4,000 & \$ 5,000 \
\hline
\end{array}$$ Nate has a 24% marginal tax rate.What is the additional tax resulting from the above sales?

Quizplus · Accepted Answer

The sale of MASH resulted in a gain of $2,000 ($12,000 - $10,000), while the sale of KMZ resulted in a loss of $1,000 ($4,000 - $5,000). The net gain is $1,000 ($2,000 - $1,000), which is subject to a 24% marginal tax rate. The additional tax resulting from the above sales is $1,000 * 24% = $240.

Nate Sold Two Securities in 2019 Nate Has a 24% Marginal Tax Rate