Bill is in the 35 percent tax bracket in 2011 During the year, he sold some stock held for 11 months at a $500 gain, gold coins held for two years at a $1,900 loss, antique toys held three years at a $2,200 gain, bonds held for two years for $400 gain, and some investment land held six months at a $300 loss. Determine Bill's net capital gain or loss and detail how it will be treated for tax purposes.

Question

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The Answer is $2,200 LTCG + $400 LTCG - $1,900 LTCL = $700 LTCG; $500 STCG - $300 STCL = $200 STCG; $700 LTCG: $300 taxed at 28%; $400 taxed at 15%; $200 STCG taxed at 35%.

Bill Is in the 35 Percent Tax Bracket in 2011