Calculating taxes on security transactions If Olivia Garcia is single and in the 33 tax bracket,...

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Calculating taxes on security transactions If Olivia Garcia is single and in the 33 tax bracket, caloate the tax associated with each of the following transactions. (Use the IRS regulations for capital gains in effect in 2014,.). EXHIBIT 3.2 Capital Gans tax Categones as of 2014 Capital gains tax rates are as low as O percent for low income or as high as 20 percent for higher income levels and certain types of asets, so long as the holding period mote than 12 months, Holding Tax Brackets/Assets Sold (2014) Tax on Capital gains perlod Less than All (10%. 15, 25%, 20w, 33%, 35%, Same as ordinary income 12 months and 39.0%) - any asset sold Over 12 10% and 15 - ansets other than real O months estate and collectibles 15, or 20 (iater only if in 39.0% tax bracket) 25%, 33%, 35%, 39.0% Sale of depreciable real estate 25% on gain up to depredation amount 28% all gains from collectibiles Collectibles Treat cach of the foliowng cases as independent of the others. a. She sold stock for $4,920 that she purchased for $4,000 9 months earlier. Round the answer to the nearest cent. Tax savings should be preceded by asign. b. She sold bonds for $3,000 that she purchased for $2.5s00 3 years earlier. Round the answer to the nearest dollar. Tax savings should be preceded by a " sign. C She sold stock for $1,300 that she purchased for $2,000 20 months eartier, Assume this to be the only Stock in Olivia's portfolio, Round the answer to the nearest cent. Tax savings should be preceded by a sign. Chapter 3 Financial Planning Exercise 4 Effect of tax credit vs. tax exemption ty defirng after tax income, demonstrate the oferences resting from a s2.000 tax oedt versun a s2.000 tax deduction for a single taxpeyer in the 25% tax bracket with s,000 of pre ta income. ound your answers to two decmal places. (Use Exhibit 3.3) Deduction s Credit Calculating taxes on security transactions If Olivia Garcia is single and in the 33 tax bracket, caloate the tax associated with each of the following transactions. (Use the IRS regulations for capital gains in effect in 2014,.). EXHIBIT 3.2 Capital Gans tax Categones as of 2014 Capital gains tax rates are as low as O percent for low income or as high as 20 percent for higher income levels and certain types of asets, so long as the holding period mote than 12 months, Holding Tax Brackets/Assets Sold (2014) Tax on Capital gains perlod Less than All (10%. 15, 25%, 20w, 33%, 35%, Same as ordinary income 12 months and 39.0%) - any asset sold Over 12 10% and 15 - ansets other than real O months estate and collectibles 15, or 20 (iater only if in 39.0% tax bracket) 25%, 33%, 35%, 39.0% Sale of depreciable real estate 25% on gain up to depredation amount 28% all gains from collectibiles Collectibles Treat cach of the foliowng cases as independent of the others. a. She sold stock for $4,920 that she purchased for $4,000 9 months earlier. Round the answer to the nearest cent. Tax savings should be preceded by asign. b. She sold bonds for $3,000 that she purchased for $2.5s00 3 years earlier. Round the answer to the nearest dollar. Tax savings should be preceded by a " sign. C She sold stock for $1,300 that she purchased for $2,000 20 months eartier, Assume this to be the only Stock in Olivia's portfolio, Round the answer to the nearest cent. Tax savings should be preceded by a sign. Chapter 3 Financial Planning Exercise 4 Effect of tax credit vs. tax exemption ty defirng after tax income, demonstrate the oferences resting from a s2.000 tax oedt versun a s2.000 tax deduction for a single taxpeyer in the 25% tax bracket with s,000 of pre ta income. ound your answers to two decmal places. (Use Exhibit 3.3) Deduction s Credit

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Sr No Purchase Price Sale Price Capital Gain Loss Duration S... View the full answer