5-44 Netting Gains and Losses. Trisha, whose tax rate is 35%, sells the following capital assets in 2007 with gains and
losses as shown:
Asset Gain or (loss) Holding Period
A $15,000 15 months
B 7,000 20 months
C (3,000) 14 months
b. Determine her increase in tax liability if the holding period for asset B is 8 months.
c. Determine her increase in tax liability if the holding periods are the same as in Part a but asset B is an antique clock.© BrainMass Inc. brainmass.com June 3, 2020, 10:02 pm ad1c9bdddf
a. Determine Trisha's increase in 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 phase-out amounts.
Net Capital gain: $19,000
Maximum tax rate ...
This posting calculates the increase in tax liability for an individual whose tax rate is 35% and who sells capital assets with different holding periods for gains/losses.