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An Investor Who Is in a 33% Tax Bracket for Normal

question 26

Short Answer

An investor who is in a 33% tax bracket for normal (ordinary) income buys a stock for $5,000 and sells it for $9,000. How much will her tax obligation be if she holds the stock for:
(a) 6 months?
(b) 14 months?

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Definitions:

Human Rights Laws

Regulations and statutes established to protect individuals from violations of their fundamental rights and freedoms by others or the state.

Discrimination

The act of making distinctions in favor or against a person or thing based on the group, class, or category rather than individual merit.

Charter of Rights

A formal declaration of the fundamental rights and freedoms guaranteed to the citizens of a country, often enshrined in its constitution.

Restaurant

A business establishment where meals are prepared and served to customers.

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