Trisha, whose tax rate is 35%, sells the following capital assets in 2013 with gains and losses as shown:
Asset __________ Gain or (Loss) _____ Holding Period
A ..................... $15,000 .............. 15 months
B ..................... 7,000 .............. 20 months
C ..................... (3,000) .............. 14 months
a. Determine Trisha's increase in tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phase-out amounts.
b. Determine her increase in tax liability if the holding period for asset B is 8 months.
c. Determine her increase in tax liability if the holding periods are the same as in Part a but asset B is an antique clock.
d. Determine her increase in tax liability if her tax rate is 39.6%.