Mary is filing as single and has total taxable income of $40,000 which includes $10,000 of...
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Mary is filing as single and has total taxable income of $40,000 which includes $10,000 of 25% gain and $3,000 of regular long term capital gain. The balance of $27,000 is ordinary taxable income. Using the simplified tax brackets, how much tax will she save by using the 'alternative tax' method (the capital gains rates)? Rate Single Tax Income Over 10% $-0- 15% $10,000 20% $50,000 25% $100,000 30% $200,000 35% $300,000 40% $500,000 But Not Over $10,000 $50,000 $100,000 $200,000 $300,000 $500,000 The Tax is 10% $1,000+ 15% $7,000+ 20% $17,000+ 25% $42,000+ 30% $72,000+ 35% $142,000+ 40% ...of the Amount Over $-0- $10,000 $50,000 $100,000 $200,000 $300,000 $500,000 Mary is filing as single and has total taxable income of $40,000 which includes $10,000 of 25% gain and $3,000 of regular long term capital gain. The balance of $27,000 is ordinary taxable income. Using the simplified tax brackets, how much tax will she save by using the 'alternative tax' method (the capital gains rates)? Rate Single Tax Income Over 10% $-0- 15% $10,000 20% $50,000 25% $100,000 30% $200,000 35% $300,000 40% $500,000 But Not Over $10,000 $50,000 $100,000 $200,000 $300,000 $500,000 The Tax is 10% $1,000+ 15% $7,000+ 20% $17,000+ 25% $42,000+ 30% $72,000+ 35% $142,000+ 40% ...of the Amount Over $-0- $10,000 $50,000 $100,000 $200,000 $300,000 $500,000
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SOLUTION To calculate Marys tax liability using the alternative tax method capital gains rates we ne... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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