For this year, Wilma is a single individual whose taxable income puts her into t
ID: 2432242 • Letter: F
Question
For this year, Wilma is a single individual whose taxable income puts her into the 33% bracket. Wilma's taxable income includes so much long-term capital gain that her ordinary taxable income is not large enough to get her out of the 15% bracket.
All of Wilma's long-term capital gain will be taxed at 15%.
Some of Wilma's long-term capital gain will be taxed at 33%.
Some of Wilma's long-term capital gain will be taxed at 0% as long as the gain is not taxed at the special rates for certain 1250 real estate or collectibles.
Wilma is not eligible for the alternative tax on long-term capital gains.
None of the above.
a.All of Wilma's long-term capital gain will be taxed at 15%.
b.Some of Wilma's long-term capital gain will be taxed at 33%.
c.Some of Wilma's long-term capital gain will be taxed at 0% as long as the gain is not taxed at the special rates for certain 1250 real estate or collectibles.
d.Wilma is not eligible for the alternative tax on long-term capital gains.
e.None of the above.
Explanation / Answer
Option A is correct, All of Wilma's long term capital gain will be taxed @ 15% for this year.
The long term capital gains tax for a single person with a tax bracket in between 32% to 35% is 15%
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