Robert and Becca file jointly.They have taxable income of $60,000 in 2018 (before considering any capital gains or losses).They have a long-term capital gain of $28,000 and a long-term capital loss of $17,000 on sales of stock in the current year.What will their capital gains tax be in the current year?
A)$0
B)$1,650
C)$2,200
D)$4,200
E)None of the above is correct

Question

Quizplus · Accepted Answer

The net long-term capital gain is $11,000 ($28,000 gain - $17,000 loss). For 2018, the 0% capital gains tax rate applies to joint filers with taxable income up to $77,200. Since their total taxable income including the net capital gain is $71,000 ($60,000 + $11,000), they fall within the 0% bracket, resulting in $0 capital gains tax.

Robert and Becca File Jointly