In October of the Current Year, Mike Sold a Share

question 44

Essay

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 on the sale of stock of a start-up technology company. He has $85,000 in taxable income before capital transactions are taken into account.
Assuming Mike is single with no dependents, what is the amount of Mike's tax on the capital transactions?

---

Definitions:

Future

The time or a period of time following the moment of speaking or writing; time regarded as still to come.

Preventing Crime

Measures or strategies designed to deter illegal activities and protect individuals and communities from criminal acts.

Just Deserts

The concept of receiving a punishment or reward that is rightfully deserved.

Incapacitation

The state of being disabled or deprived of legal power or physical capabilities.