Lisa Sizemore, a taxpayer in the 10–15 percent tax bracket, purchased stock as an investment on July 11, 2013. She sold the stock on July 9, 2014, 2 days before qualifying for the long-term holding period. If Lisa had waited until July 12, 2014 to sell the stock, she would have qualified for the 0 percent tax rate. Instead, the sale will now be taxed at ordinary income rates. Upon realizing this, Lisa has told you that she will “fudge” the sale date to July 12. She says to you, “What’s the big deal? It’s just 2 days.” What would you say to Lisa?
Answer to relevant QuestionsRobert Ramos (age 36) is a single taxpayer, living at 8765 Bay Dr., Monterey, CA 93940. His Social Security number is 976-23-5132. Robert’s earnings and income tax withholding as the manager of a local supermarket store ...For each of the following payments, indicate the form that should be used to report the payment: a. Interest of $400 paid by a bank b. Payment of $400 in dividends by a corporation to a shareholder c. Periodic payments ...Ralph and Kathy Gump are married with one 20-year-old dependent child. Ralph earns a total of $39,000 and estimates their itemized deductions to be $16,000 for the year. Kathy is not employed. Use Form W-4 on Pages 9-39 and ...Dr. Carol Harris, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local college. Carol’s ...Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership’s first year of operation is ...
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