Charishma is a taxpayer with taxable income exceeding $500,000.She sells a stock for a $50,000 gain.She acquired the stock 13 months earlier.The gain will be taxed at a total tax rate of 20%.

Question

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In addition to the higher 20% long-term capital gain rate,she will also pay the additional 3.8% tax on investment income that applies to higher-income taxpayers.

Charishma Is a Taxpayer with Taxable Income Exceeding $500,000