Mr Quinn, a Single Taxpayer, Recognized a $900 Net Short-Term

question 5

Multiple Choice

Mr. Quinn, a single taxpayer, recognized a $900 net short-term capital gain and a $1,380 long-term capital gain this year. Which of the following statements is false?

• A) If Mr. Quinn's taxable income excluding his capital gains is $30,000 (marginal tax rate of 12%), the total income tax on his capital gains is $108.
• B) If Mr. Quinn's taxable income excluding his capital gains is $530,000 (marginal tax rate of 37%), the total income tax on his capital gains is $609.
• C) Only $1,380 of the capital gain is subject to a preferential tax rate.
• D) None of these choices arefalse.

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Definitions:

Actual Notice

A legal concept indicating that an individual has been directly informed about a matter or event, making them aware of it.

Certified Mail

A postal service offering that provides the sender with a mailing receipt and electronic verification that an article was delivered or that a delivery attempt was made.

Termination

The act of bringing an end to something, such as a contract, agreement, or employment.

Employer Liability

The legal responsibility of employers for injuries, damages, or losses their employees cause while performing their job duties.