What is the federal income tax owed by an investor in the 35 percent income tax

Question

What is the federal income tax owed by an investor in the 35 percent income tax bracket (20percenttax rate on long-term capital gains anddividendincome)? Please answer the following 5 questions. Thank you so much!

1, Owns Stock A that paid $350 in dividends and sold Stock B for a long-term capital gain of $1200.

2, Sold Stock A for a short-term capital gain of $3500 and sold stock B for a short-term capital loss of $3100.

3, Sold stock A for a long-term capital gain of $3700 and sold stock B for a long-term capital loss of $5100.

4, Sold Stock A for a $6000 short-term loss and sold stock B for a $2000 long-term gain.

5, Savings account paid annual interest of $1000 and a stock that paid a dividend of $ 1000.

Explanation / Answer

1)Owns Stock A that paid $350 in dividends and sold Stock B for a long-term capital gain of $1200.

income tax owed =0.2*(350+1200)= $310

2, Sold Stock A for a short-term capital gain of $3500 and sold stock B for a short-term capital loss of $3100. income tax = 0.4*(3500-3100)= $160

3, Sold stock A for a long-term capital gain of $3700 and sold stock B for a long-term capital loss of $5100.

net income=0 since he had loss of $1400

income tax = rate*net income= 0.2*(0)=0

4, Sold Stock A for a $6000 short-term loss and sold stock B for a $2000 long-term gain.

net income= 2000-6000 =-4000

hence no income tax paid

5 Savings account paid annual interest of $1000 and a stock that paid a dividend of $ 1000.

tax= 0.4*1000+0.2*1000= $600

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