Perry, a single taxpayer, has taxable income of $198,000 and is in the 32% tax bracket. During 2020, he had the following capital gains and losses. Gain from a long time capital asset (held for 10 years) $25,000 Loss from the sale of A stock (held for 4 years) $10,000 Gain from the sale of B stock (held for 8 month) $4,000 Perry's tax consequences from these gains are as follows: A. None of these. B. (15% x $25,000) (32% x $10,000) C. 15% x $34,000 D. (32% x $35,000) (15% x $4,000) E. (15% x $35,000) (32% x $4,000)

Respuesta :

Answer:

A. None of these.

Explanation:

Perry's capital gains taxes = $25,000 - $10,000 = %15,000 x 15%

both investments were held for periods longer than 1 year

Addition to Perry's ordinary income = $4,000 x 32%

since Perry only owned the investment for 8 months it is considered short term gain