Share
Explore BrainMass

Taxes on Capital Gains

An investor is in the 33 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the cases of losses) in the cur- rent tax year for each of the following situations?
1. a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000
2. b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000
3. c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000
4. d) Net short-term capital gains of $3,000; net long-term capital losses of $2,000
5. e) Net short-term capital losses of $4,000; net long-term capital gains of $3,000
6. f) Net short-term capital losses of $1,000; net long-term capital losses of $1,500
7. g) Net short-term capital losses of $3,000; net long-term capital losses of $2,000

2. You are in the 25 percent income tax bracket. What are the taxes owed or saved if you:
a) Contribute $2,000 to a 410(k) plan
b) Contribute $2,000 to a Roth IRA
c) Withdraw $2,000 from a traditional IRA
d) Withdraw $2,000 from a Keogh account

3.your traditional IRA account fast stock of GFH which cost $2000, 20 years ago when you were 50 years old. you have been very fortunate and the stock is now worth $23000. you are in 35% income tax bracket and pay 15% on long term capital gains
a) what was the annual rate of growth in the value of the stock?
b) what are the taxes owed if you withdraw the funds?

Solution Preview

An investor is in the 33 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the cases of losses) in the cur- rent tax year for each of the following situations?
1. a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000 : $3,000 X .33 = $990. $4,000 X.15 = $600 = $1,590
2. b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000 : $1,000 X .15 = $150
3. c) Net ...

Solution Summary

The solution assists on determines the taxes on capital gains.

$2.19