Kate Recognized a $25,700 Net Long-Term Capital Gain and a $33,000

question 87

Multiple Choice

Kate recognized a $25,700 net long-term capital gain and a $33,000 net short-term capital loss this year. What is her current net income tax cost or savings from her capital transactions if her marginal rate on ordinary income is 32%?

• A) $0
• B) $960 net tax savings
• C) $2,336 net tax savings
• D) $450 net tax cost

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Definitions:

Reasonable Basis

A logical, fact-based foundation for a belief, action, or decision, indicating that due diligence has been exercised.

Itemization

The process of listing individual items or services separately, often in billing or accounting.

Funeral Services

Professional services provided by a licensed funeral director and staff, which may include the preparation of the body, conducting the funeral ceremony, and the management of the funeral process.

Federal Law

The body of law created by the federal government of a country, which applies to the entire nation and supersedes state laws in areas of federal jurisdiction.