In October of the current year, Mike sold a share of Berkshire-Hathaway for $73,000. he had acquired it several years ago at a cost of $42,000. He also sold Microsoft stock he had held for 3 years at a gain of $17,000. He had a short-term $2,000 loss of the sale of the stock of a start-up chemical company. he had $85,000 in taxable income before capital transactions are taken into account.

If Mike is a single with no dependents, what is the amount of Mike's tax on the capital transaction?

Answer rating: 100% (QA)

To determine the amount of tax on the capital transactions for Mike we need to calculate the capital gains and losses separately and then apply the ap... View the full answer