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    Taxes on Capital Gains

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    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?

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    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.

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