4 - part c

Below is a table with four different scenarios for a taxpayer who opts to sell several different types of stock throughout the year. Assume that all ordinary income for the taxpayer is taxed at a flat tax rate of 22%. In contrast, his long-term capital gains tax rate is 15%. His only income outside the transactions with the stock is $100,000 or ordinary income from his salary.

	Scenario 1	Scenario 2	Scenario 3	Scenario 4
ST capital gain		$4,000	$4,000	$4,000
ST capital loss	$7,000		$7,000	$10,000
LT capital gain		$9,000	$9,000	$9,000
LT capital loss	$5,000		$5,000	$5,000

Fill in the blank: The total change in tax due for the taxpayer because of the gains and losses in Scenario 3 is $_______.

4 - part d

Below is a table with four different scenarios for a taxpayer who opts to sell several different types of stock throughout the year. Assume that all ordinary income for the taxpayer is taxed at a flat tax rate of 22%. In contrast, his long-term capital gains tax rate is 15%. His only income outside the transactions with the stock is $100,000 or ordinary income from his salary.

	Scenario 1	Scenario 2	Scenario 3	Scenario 4
ST capital gain		$4,000	$4,000	$4,000
ST capital loss	$7,000		$7,000	$10,000
LT capital gain		$9,000	$9,000	$9,000
LT capital loss	$5,000		$5,000	$5,000

Fill in the blank: The total change in tax due for the taxpayer because of the gains and losses in Scenario 4 is $_______.