Question

Victor is a single taxpayer in the 24% marginal tax bracket. In 2019, he sold stock shares for a long-term capital gain of $8,500. He also sold some financial services stock for a long-term capital loss of $2,000. In addition, he sold the home that he had lived in for the past 3 years and experienced a $15,000 gain on the house.
1. He has a net taxable long-term capital_____ (fill gain or loss in this blank) for the year of 2019.
2. The net taxable long-term capital gain (or loss) is $___ . (fill an integer without "thousand separators" in this blank).
3. He will pay (or save) $______ in taxes as a result of these transactions. (fill an integer without "thousand separators" in this blank).

Answer 1

Answer:

1. He has a net taxable long-term capital gain for the year of 2019

2. The net taxable long-term capital gain is $ 21.500

3. He will pay  $5,160 in taxes as a result of these transactions

Explanation:

1.  According to the given data we can conclude that he has a Net taxable long term capital Gain

2.  In order to calculate the the net taxable long-term capital gain (or loss) we would have to make the following calculations:

ITEMS                                                                       GAIN / LOSS

long term capital gain                                                    $8,500

long term capital loss                                                   ($2,000)

amount adjusted                                                           $6,500

long term capital gain as house sold after 3 years $15,000

Net capital long term capital gain                          $21,500

Overall, long term gain as loss is adjusted and the long term capital gain is $21,500

3.  Tax impact on the Net capital long term capital gain $21,500 is at the rate of 24% marginal tax bracket is $5,160 which is determined as ($21,500 x 24%)

Therefore, He will pay  $5,160 in taxes as a result of these transactions