A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next

A taxpayer pays 22% on the federal return for their ordinary income (including some short-term capital gains) and 15% on some long term capital gains. Assuming that the income is equally taxable to California and that the California ordinary income tax bracket for the same taxpayer is 9.3%; What rates are going to be used for taxing the long-term capital gains for the State? O 0%. LTCG rates in the 9.3% bracket are zero for those gains. O 9.3% on all income that qualifies in that bracket. The State doesn't give preferential treatment to capital gains O 1%. The LTCG rates for all gains are a single percentage point. O 4%. LTCG rates are two brackets lower for long-term gains. Next

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Similar questions

A taxpayer receives $5,000 on their federal return in taxable unemployment income. What is the amount that must be subtracted from the state return to calculate the portion taxable to the State? A. Potentially a $5,000 subtraction. The amounts need to have been taxable on the federal return and administered by California's EDD to be excludable. Unemployment received from other states is still fully taxable in most cases. B. $5,000 subtraction - California does not include amounts received from any unemployment source in State income. C. $0 subtraction - The taxpayer may, however, claim a credit for the job search costs to reduce their taxable exposure to unemployment income. D. $0 subtraction - This is taxable income to the State.
Which of the following is a deductible California expense subject to a 2% of adjusted gross income limitation? Adoption-related expense. Casualty and theft losses. Gambling losses. Tax preparation fees.
A resident citizen obtains P9,500 each from the following sources, net of final tax. Under which of the following passive income does the government obtain the least amount of final tax? interest income from tax-free covenant bonds share in net income of a taxable partnership interest income from bank deposits prizes
The taxpayer's marginal federal and state tax rate is 25%. Which would the taxpayer prefer? a.$1.00 taxable income rather than $.75 tax-exempt income. b.$1.25 taxable income rather than $1.00 tax-exempt income. c.$1.40 taxable income rather than $1.00 tax-exempt income. d.$1.00 taxable income rather than $1.25 tax-exempt income.
A taxpayer has $6,500 in mortage interest, $4,000 in real estate taxes, $500 in tax preparation fees, and $2,000 in Section 1341 Claim of Deductions available for itemization. Ignoring the 2% of AGI limitation, what amount of these base values - in total - is deductible for California but NOT for the Federal return? 500 2500 4000 7000
The unified estate and gift tax credit exempts people with taxable estates under $11.7 million from paying any estate taxes at all. Should the exemption be set higher? Or lower?
An unmarried individual in California with a taxable income of about $75,000 has a federal incremental tax rate of 25% and a state incremental tax rate of 9.3%. What is his combined incremental tax rate? (a) Assume standard deduction taken. (b) Assume deductions are itemized.
Here is the Federal Tax Rate Schedule X (see attached) that specifies the tax owed by a single taxpayer for a recent year. The given tax table can be modeled by a piecewise function (see attached), where x represents the taxable income of a single taxpayer and T(x) is the tax owed. Then Find and interpret T(50,000).
If you live in a state that needs to collect $18 million in property taxes and has a tax rate of 2.77%, what is that states taxable value
According to Progressive tax system in a country an individual are exempted for the first OMR 30,000 taxable income. Higher income bracket from 30,0001 to 75,000 taxable income on which tax rate is 15%. Additional income tax bracket over and above OMR 75,000 taxable income on which tax rate is 20%. Assuming that taxable income of an individual is OMR 90,000. What will be the tax liability of an individual? a. OMR 14,250 b. Exempted c. OMR 9,750 d. OMR 6,750
The maximum tax bases and percentages for 2022 for the two portions of the self-employment tax are which of the following? Social Security Medicare a. $ 147,000; 12.4% Unlimited; 2.9%. b. $ 147,000; 12.4% Unlimited; 15.3%. c. $ 142,800; 12.4% Unlimited; 2.9%. d. $ 142,800; 15.3% Unlimited; 15.3%.
A taxpayer is itemizing their return and they're trying to calculate the deductible amount of state income taxes paid. They have $4,000 from their Form(s) W-2 and they paid an outstanding balance in the current year for the prior year's balance of $2,500. What is the total amount of Line 5 income taxes that they can itemize? (Do not consider SALT limitations for this question) 2500 4000 6500