In September 2016,Eduardo sells stock he purchased in October 2013 at a gain of $5,000.If Eduardo is in the 10% marginal tax rate bracket and he has no other capital asset sales in 2016,what is his tax on the sale of the stock?

Question

Quizplus · Accepted Answer

Since Eduardo is in the 10% marginal tax bracket, his long-term capital gains tax rate is 0% for gains on assets held for more than a year. Therefore, he pays no tax on the $5,000 gain.

In September 2016,Eduardo Sells Stock He Purchased in October 2013