Henry, a single taxpayer with a marginal tax rate of 35 percent (taxable income is $300,000 before considering any of the items below),
sold all of the following assets during the year:
				Holding		Applicable
Asset		Sale Price	Tax Basis	Period		Rate	Explanation
FGH Stock		45000	22500	More than one year
ERT Stock		12000	8500	Less than one year
Baseball card collection		9500	5500	More than one year
HHH Stock		11000	15500	Less than one year
Rental residence*		100000	55000	More than one year
*$25,000 of the gain is a 25 percent gain. The remaining gain is 0/15/20 percent gain.
What tax rate(s) will apply to each of Henry's capital gains or losses?

***Assume it is year 2020 and Henry resides in the U.S***

Answer rating: 100% (QA)

Henrys marginal tax rate is 35 which applies to his ordinary income Capital gains have lower prefere... View the full answer