An investor bought 100 shares of a REIT for $54 a share and two years later sold the shares for $62. The REIT annually distributed $4.00 per share ($400)consisting of $2.00 ($200)return of capital, $1.20 ($120)in income, and $0.80 ($80)in long-term capital gains. The investor's income tax bracket is 30 percent. The long-term capital gains tax rate is 15 percent. What is the investor's second year tax obligation?

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The Answer of An investor bought 100 shares of a REIT for $54 a share and two years later sold the shares for $62. The REIT annually distributed $4.00 per share ($400)consisting of $2.00 ($200)return of capital, $1.20 ($120)in income, and $0.80 ($80)in long-term capital gains. The investor's income tax bracket is 30 percent. The long-term capital gains tax rate is 15 percent. What is the investor's second year tax obligation?

An Investor Bought 100 Shares of a REIT for $54