Question

Carrie and Michael are married and will file a joint return. In addition to income from wages, they have a $5,000 long-term capital gain from the sale of stock. Their 2019 taxable income is $121,500. Their capital gain will be taxed at a rate of:

Answer 1

Answer: 15%

Explanation:

From the question, we are informed that Carrie and Michael are married and will file a joint return and that they have a $5,000 long-term capital gain from the sale of stock. We are further told that their 2019 taxable income is $121,500.

Based on the above scenario, their capital gain will be taxed at a rate of 15%. This is due to the fact that when filing their status, they will be regarded as married and the applicable rate is 15% for an income that is between $78,751 and $488,850. Since they've $121,500 their rate will be 15%.