Bin, who is singla View the capital assets. income of $390,000, sells the following capital assets View the 2022 tax rate schedule for the Single filing status. View the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends. Read the requirements. Requirement a. Determine Faith's increase in income tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phaseout amounts. Increase in tax liability pital assets in 2022 with gains and losses as sho Requirement b. Determine her increase in income tax liability if the holding period for asset B is 8 months. Increase in tax liability Requirement c. Determine her increase in income tax liability if the holding periods are the same as in Part a but asset B is an antique clock. Increase in tax liability Requirement d. Determine her increase in income tax liability if her taxable income is $470,000. Increase in tax liability tes for Adjusted Net Capital Gain (ANCG) and Qualified Dividends tal Gains and Dividends tal gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: Ordinary income tax rates (up to 37% in 2022) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential Rate Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: 0% 15% 20% Single Up to $41,675 > $41,675 but not over $459,750 Over $459,750 Filing Jointly Up to $83,350 > $83,350 but not over $517,200 Over $517,200 Head of Household Up to $55,800 > $55,800 but not over $488,500 Over $488,500 Single Tax Rate Schedule - X in taxable income is. Not over $10,275 Over $10,275 but not over $41,775 Over $41,775 but not over $89,075 Over $89,075 but not over $170,050 Over $170,050 but not over $215,950 Over $215,950 but not over $539,900 Over $539,900 Print Capital Assets Asset Gain or (Loss) 16,500 9,000 (1,000) A B C $ Holding Period 15 months 20 months 14 months The tax is: 10% of taxable income. ...$1,027.50 +12% of the excess over $10,275. ...$4,807.50 +22% of the excess over $41,775. $15,213.50 +24% of the excess over $89,075. .$34,647.50+32% of the excess over $170,050. $49,335.50+ 35% of the excess over $215,950. $162,718.00 +37% of the excess over $539,900. Done

Bin, who is singla View the capital assets. income of $390,000, sells the following capital assets View the 2022 tax rate schedule for the Single filing status. View the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends. Read the requirements. Requirement a. Determine Faith's increase in income tax liability as a result of the three sales. All assets are stock held for investment. Ignore the effect of increasing AGI on deductions and phaseout amounts. Increase in tax liability pital assets in 2022 with gains and losses as sho Requirement b. Determine her increase in income tax liability if the holding period for asset B is 8 months. Increase in tax liability Requirement c. Determine her increase in income tax liability if the holding periods are the same as in Part a but asset B is an antique clock. Increase in tax liability Requirement d. Determine her increase in income tax liability if her taxable income is $470,000. Increase in tax liability tes for Adjusted Net Capital Gain (ANCG) and Qualified Dividends tal Gains and Dividends tal gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: Ordinary income tax rates (up to 37% in 2022) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential Rate Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: 0% 15% 20% Single Up to $41,675 > $41,675 but not over $459,750 Over $459,750 Filing Jointly Up to $83,350 > $83,350 but not over $517,200 Over $517,200 Head of Household Up to $55,800 > $55,800 but not over $488,500 Over $488,500 Single Tax Rate Schedule - X in taxable income is. Not over $10,275 Over $10,275 but not over $41,775 Over $41,775 but not over $89,075 Over $89,075 but not over $170,050 Over $170,050 but not over $215,950 Over $215,950 but not over $539,900 Over $539,900 Print Capital Assets Asset Gain or (Loss) 16,500 9,000 (1,000) A B C $ Holding Period 15 months 20 months 14 months The tax is: 10% of taxable income. ...$1,027.50 +12% of the excess over $10,275. ...$4,807.50 +22% of the excess over $41,775. $15,213.50 +24% of the excess over $89,075. .$34,647.50+32% of the excess over $170,050. $49,335.50+ 35% of the excess over $215,950. $162,718.00 +37% of the excess over $539,900. Done

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 38P

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