Connect e Chegg Study I Guided S/XYe What Would Be The Avex C secure l https://n

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Connect e Chegg Study I Guided S/XYe What Would Be The Avex C secure l https://newconnect.mheducation.com/flow/connect.html Lesson 4 Homework 6 Saved Help Save & Exit Submit Check my work Samuel Jenkins made two investments, the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $3,000 on each. If Samuel is in the 28 percent tax bracket, what will be the amount of capital gains tax on each investment? 0.93 points Capital Gains Tax Investment 1 (held 13 months) Investment 2 (held 2 months) Print References Mc 5:04 u

Explanation / Answer

Gain on Investment held for more than 1 year is Long term capital gain Gain on Investment held for less than 1 year is Short term capital gain Investment 1 (held 13 months) taxable at rate of 15% Tax due on investment 1 = 3,000*15%= 450 Investment 2 (held 2 months) taxable at ordinary tax rates Tax due on investment 2 = 3000*28%= 840, So Capital Gain Tax Investment 1 (held 13 months) 450 Investment 2 (held 2 months) 840

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