Suppose a high-income individual, subject to a 15 percent capital gains tax rate, sells 100 shares of company X and makes a loss of $500. She also sells 100 shares of company Y and makes a profit of $1,200. How much in capital gains tax will she pay?

Question

Quizplus · Accepted Answer

The individual has a net gain of $700 ($1,200 profit - $500 loss). The capital gains tax on $700 at a 15% rate is $105.

Suppose a High-Income Individual, Subject to a 15 Percent Capital