In September 2014, Eduardo sells stock he purchased in October 2013 at a gain of $5,000. If Eduardo is in the 10% marginal tax rate bracket and he has no other capital asset sales in 2014, what is his tax on the sale of the stock?

Question

Quizplus · Accepted Answer

Since the stock was held for more than a year, it qualifies for long-term capital gains tax treatment. For taxpayers in the 10% tax bracket, the long-term capital gains tax rate is 0%. Therefore, Eduardo's tax on the sale is $0.

In September 2014, Eduardo Sells Stock He Purchased in October