Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2016.

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Holly has recognized a $9,000 STCL. She has no other recognized capital gains and losses in 2016. She is considering the sale of a Sec. 1231 asset held for four years at a $5,000 gain in 2016. 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 2016. Her marginal tax rate for 2016 is 33%. What is the amount of increase in her 2016 taxes if Holly recognizes the $5,000 Sec. 1231 gain in 2016?

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Federal Taxation 2017 Individuals

ISBN: 9780134420868

30th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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