Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year: $$\begin{array} { | c | c | c | c | c | }
\hline \text { Asset } & \text { Sale Price } & \text { Tax Basis } & \text { Gain/Loss } & \begin{array} { c }
\text { Holding } \
\text { Period }
\end{array} \
\hline \text { ABC Stock } & \$ 50,000 & \$ 25,000 & \$ 25,000 & \begin{array} { c }
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { XYZ Stock } & \$ 12,000 & \$ 9,000 & \$ 3,000 & \begin{array} { c }
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Stamp Collection } & \$ 10,000 & \$ 5,000 & \$ 5,000 & \begin{array} { c }
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { RST Stock } & \$ 13,000 & \$ 19,000 & ( \$ 6,000 ) & \begin{array} { c }
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Rental Home } & \$ 100,000 & \$ 50,000 ^ { * } & \$ 50,000 & \begin{array} { c }
\text { More than 1 } \
\text { Year }
\end{array} \
\hline
\end{array}$$ *The original purchase price of the rental home was $75,000. The current tax basis reflects $25,000 of tax depreciation taken.
What tax rate(s) will apply to Henry's capital gains or losses?

Question

Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year: $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Asset } & \text { Sale Price } & \text { Tax Basis } & \text { Gain/Loss } & \begin{array} { c } 
\text { Holding } \
\text { Period }
\end{array} \
\hline \text { ABC Stock } & \$ 50,000 & \$ 25,000 & \$ 25,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { XYZ Stock } & \$ 12,000 & \$ 9,000 & \$ 3,000 & \begin{array} { c } 
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Stamp Collection } & \$ 10,000 & \$ 5,000 & \$ 5,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { RST Stock } & \$ 13,000 & \$ 19,000 & ( \$ 6,000 ) & \begin{array} { c } 
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Rental Home } & \$ 100,000 & \$ 50,000 ^ { * } & \$ 50,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline
\end{array}$$ *The original purchase price of the rental home was $75,000. The current tax basis reflects $25,000 of tax depreciation taken.
What tax rate(s) will apply to Henry's capital gains or losses?

Quizplus · Accepted Answer

The Answer of Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year: $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Asset } & \text { Sale Price } & \text { Tax Basis } & \text { Gain/Loss } & \begin{array} { c } 
\text { Holding } \
\text { Period }
\end{array} \
\hline \text { ABC Stock } & \$ 50,000 & \$ 25,000 & \$ 25,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { XYZ Stock } & \$ 12,000 & \$ 9,000 & \$ 3,000 & \begin{array} { c } 
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Stamp Collection } & \$ 10,000 & \$ 5,000 & \$ 5,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline \text { RST Stock } & \$ 13,000 & \$ 19,000 & ( \$ 6,000 ) & \begin{array} { c } 
\text { Less than 1 } \
\text { Year }
\end{array} \
\hline \text { Rental Home } & \$ 100,000 & \$ 50,000 ^ { * } & \$ 50,000 & \begin{array} { c } 
\text { More than 1 } \
\text { Year }
\end{array} \
\hline
\end{array}$$ *The original purchase price of the rental home was $75,000. The current tax basis reflects $25,000 of tax depreciation taken.
What tax rate(s) will apply to Henry's capital gains or losses?

Henry, a Single Taxpayer with a Marginal Tax Rate of 35