Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2018.

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Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2018. She is considering the sale of a Sec. 1231 asset held for four years at a $5,000 gain in 2018. She had not recognized any Sec. 1231 losses during the previous five years and does not expect to have any other Sec. 1231 transactions in 2018. Her marginal tax rate for 2018 is 32%. What is the amount of increase in her 2018 taxes if Holly recognizes the $5,000 Sec. 1231 gain in 2018?

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Related Book For  answer-question

Federal Taxation 2019 Individuals

ISBN: 9780134739670

32nd Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson

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