Henry, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year:

Asset	Sale Price	Tax Basis	Gain /Loss	Holding Period
ABC Stock	$ 50,000	$ 25,000	$ 25,000	More than 1 year
XYZ Stock	$ 12,000	$ 9,000	$ 3,000	Less than 1 year
Stamp Collection	$ 10,000	$ 5,000	$ 5,000	More than 1 year
RST stock	$ 13,000	$ 19,000	$ (6,000)	Less than 1 year
Rental Home	$ 100,000	$ 50,000	$ 50,000*	More than 1 year

*$ 25,000 of the gain is $1250 recapture. The remaining gain is 0/*15/20 percent gain. What are Harry’s recognized gains/losses for the year and what tax rate(s) will apply to those gains/losses?

Answer rating: 100% (QA)

Longterm capital gain taxed at 28 stamp collection 5000 short term ... View the full answer