What Is the Federal Income Tax Owed by an Investor

question 13

Essay

What is the federal income tax owed by an investor in the 35 percent income tax bracket? The tax rate on long-term capital gains is 15 percent.
a. Bob owns a savings account that paid $350 in interest and sold Stock B for a long-term capital gain of $1,200.

b. Bill sold Stock A for a short-term capital gain of $3,500; sold Stock B for a short-term capital loss of $3,100.

c. Brian sold Stock A for a long-term capital gain of $3,700; sold Stock B for a long-term capital loss of $5,100.

d. Barbara sold Stock A for a $6,000 short-term loss and sold Stock B for a $2,000 long-term gain.

e. Roberta's IRA account collected interest of $1,000 and a bond paid her interest of $1,000.

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Definitions:

Appraised Fair Value

The estimated market value of an asset based on the judgment of a qualified appraiser at a specific time.

Cost

The value of economic resources used or the amount of expenditure incurred to acquire or produce a good or service.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any associated depreciation or amortization from its cost.

Property

Assets or possessions owned by an individual or company, encompassing both tangible and intangible assets.