John is single and does not itemize deductions. He has long-term capital gain of $60,000 from the sale of Apple Computer stock he purchased in 2005 for $40,000 and sold for $100,000. He has no other capital gains or losses and has other gross income which is from wages of $40,150. Fill out a Schedule D and Form 8949 and figuring out his federal income tax liability using the long-term capital gains rates (if applicable) and assuming his employer withheld $4,560 from his wages to go toward federal income taxes for the year (and he can only claim one personal exemption for himself and he claims the standard deduction No California return requested here as CA does not offer Capital Gain rates - it would just be included in normal income.

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Wages less standard deduction 4015012400 ... View the full answer