Nisha is single and has taxable income of $90,000 in 2020, comprised of $11,000 of longterm capital
Question:
Nisha is single and has taxable income of $90,000 in 2020, comprised of $11,000 of longterm capital gain and $79,000 of wage income from her job at a California accounting firm. What is Nisha’s Federal tax liability using the alternative tax computation for tax year 2020? Recall that the “alternative tax” applies only if taxable income includes some long-term capital gain or qualified dividend income. Here, the reference to “alternative tax” is different than “alternative minimum tax.”
a. $14,889
b. $14,820
c. $16,790
d. $17,876
e. None of the above.
Same facts as in Question above. How much does Nisha save using the alternative tax computation for his $11,000 long-term capital gain?
a. $729
b. $770
c. $2,570
d. $3,020
e. None of the above.
Fundamentals of Taxation 2015
ISBN: 9781259293092
8th edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone