Kirby is in the 15% tax bracket and had the following capital asset transactions during 2016:
Kirby's tax consequences from these gains are as follows:

Question

Quizplus · Accepted Answer

Kirby's short-term capital gain from selling the stock is $10,000, which is taxed at the ordinary income tax rate of 15%. Kirby's long-term capital gain from selling the rental property is $13,000, which is taxed at the long-term capital gains tax rate of 0% for taxpayers in the 10% and 15% tax brackets. Therefore, Kirby's tax consequences are (0% × $10,000) + (15% × $13,000) = $1,950. Option C is the only one that matches this calculation.

Kirby Is in the 15% Tax Bracket and Had the Following