In September 2013,Eduardo sells stock he purchased in October 2012 at a gain of $5,000.If Eduardo is in the 10% marginal tax rate bracket and he has no other capital asset sales in 2013,what is his tax on the sale of the stock?
A)$ - 0 -
B)$ 500
C)$ 750
D)$1,000
E)$1,250

Question

Quizplus · Accepted Answer

Since Eduardo held the stock for more than one year, it qualifies for long-term capital gains tax treatment. In 2013, individuals in the 10% tax bracket have a 0% tax rate on long-term capital gains. Therefore, Eduardo's tax on the sale is $0.

In September 2013,Eduardo Sells Stock He Purchased in October 2012