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
