Kirby, a single taxpayer, has taxable income of $30,000 and is in the 12% tax bracket.During 2019, she had the following capital asset transactions: $\begin{array}{llcc}
\text {Long-term gain from the sale of a coin collection } &\$11,000\
\text { Long-term gain from the sale of a land investment } &10,000\
\text { Short-term gain from the sale of a stock investment} &2,000\
\end{array}$
Kirby's tax consequences from these gains are as follows:

Question

Kirby, a single taxpayer, has taxable income of $30,000 and is in the 12% tax bracket.During 2019, she had the following capital asset transactions: $\begin{array}{llcc}
  \text {Long-term gain from the sale of a coin collection  } &\$11,000\
 \text { Long-term gain from the sale of a land investment } &10,000\
 \text {  Short-term gain from the sale of a stock investment} &2,000\
\end{array}$
 Kirby's tax consequences from these gains are as follows:

Quizplus · Accepted Answer

Kirby's long-term capital gains of $10,000 are taxed at 0% because she is in the 12% or lower tax bracket. Her short-term capital gains of $13,000 are taxed at her ordinary income tax rate of 12%. Therefore, Kirby's tax consequences are ($0 + 0.12*$10,000) + (0.12*$13,000) = $1,560, which corresponds to option C.

Kirby, a Single Taxpayer, Has Taxable Income of $30,000 and Is