Sergio purchased 100 units of a mutual fund on April 1st, 2017 at a price of $20 per unit. There was a $2 per unit distribution that was paid out to investors in late November 2017 in the form of capital gains. After this distribution, Sergio's total investment was worth $2,200. As a result (and assuming Sergio is subject to a 40% marginal tax rate), what is Sergio's tax liability due to this distribution? $80.00 $100.00 $0 $40.00

Sergio purchased 100 units of a mutual fund on April 1st, 2017 at a price of $20 per unit. There was a $2 per unit distribution that was paid out to investors in late November 2017 in the form of capital gains. After this distribution, Sergio's total investment was worth $2,200. As a result (and assuming Sergio is subject to a 40% marginal tax rate), what is Sergio's tax liability due to this distribution? $80.00 $100.00 $0 $40.00

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 43P

See similar textbooks

Similar questions

On April 29, 2017, Corey purchased 2,000 units in a Canadian mutual fund company for $13,000. On April 29, 2021, he sold 1,500 shares when they hit $29/share and incurred a large gain. He of course bragged about the gain but did not tell anyone about the capital loss of $5,000 that he also incurred on some other mutual funds sold earlier in the year in January 2021. His tax rate is 40%, how much tax will he pay on the sale of these investments
In 2014, the Edlins borrowed money to purchase stocks and taxable corporate bonds. During 2018, the Edlins paid $11,900 of interest in conjunction with this loan. Their investment income for 2018 consists of $5,000 of qualified dividend income, $2,400 of taxable interest income, and $3,300 of net capital gain. How much of the $11,900 can the Edlins deduct on their 2018 Schedule A?
John is single and has AGI of $250,000. He also made the following investments. What is his total Net Investment Income Tax for the gains and losses in 2020? Long Term or Short Term Total Gain/Loss Long Term $3,500 Short Term -$8,500 Long Term -$10,000 Short Term $500 Short Term -$3,000
The Smith Family Trust earns $60,000 in eligible dividends during 2020. It allocates $20,000 of income to its beneficiary, Sam Smith Jr. What is the type of income that Sam Smith Jr. will report on his tax returns? Answer options: An eligible dividend Trust income A return of capital Capital gains
Michel has heard of some Canadians that are millionaires with their TFSA’s. If that were the case and they withdrew $1 million dollars from their TFSA account in 2023, how much tax would they pay on the withdrawn funds if they were in a 53.31% marginal tax bracket? Tax calculation on $1 million TFSA withdrawal:
During the current year, 2022, Travis takes out a $40,000 loan, using stock he owns as collateral. He uses $10,000 to purchase a car, which he uses 100% for personal use. He uses the remaining funds to purchase stocks and bonds. He pays $3,200 interest on the loan. Travis also reports the following for the year: AGI without any investment income $130,000 State income taxes paid 8,400Dividend income (qualified dividends) 10,000 Interest income 2,100 Qualified residence interest 7,800Investment expenses (exclusive of interest) 8,000 Net short-term capital gains 7,300Net long-term capital gain 8,600Travis is single. What is his net taxable income?
John makes $6,500 contribution into a Roth IRA in 2023. He is in the 22% marginal tax bracket. How much will this reduce tax liability? $6,500 $0 $1,430 $2,000
In 2022, Greg's business had $1 million in revenue, and had $500,000 in net income in 2022. His business had a Net Operating Loss of $100,000 from 2021 that he carryforwarded to 2022. How much of the Net Operating Loss from 2021 can Duke use to offset his business' net income in 2022 on his California Income Tax Return? Group of answer choices $0 $50,000 $100,000 $500,000
Samuel Jenkins made two invstments, the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $3,000 on each. If Samuel is in the 28 percent tax bracket, what will be the amount of capital gains tax on each investment?
Accounting 1.Jake pays $8,500 in deductible property taxes. His marginal tax rate is 31%, his effective tax rate is 26% and his nominal average tax rate is 28%. What is Jake's tax savings from paying the property tax? 2.Mike and Liz file a joint return in 2021. AGI is 64,000 and they have $27,000 of itemized deductions. Mike and Liz are both 65. What is their taxable income for 2021? a. $35,500 b. $36,200 c. $37,000 d. $38,900 e. None of the answers provided is correct.
Fred decides to gift 25 shares of ABC to his favorite charity. He had purchased the shares in 2015 at $20/share. The current market value of XYZ shares is $35. His average tax rate is 20% and his marginal tax rate is 32%. Select each of the correct answers A. The value of his gift is $875 B. The tax savings for this gift is $175 C. The value of his gift is $500 D. The tax savings for this gift is $280 E. The capital gains tax on this gift will be $56.25
Brad Shin is an operations manager for a large manufacturer. He earned $72,500 in 2015 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Brad is in the 25% tax bracket, calculate his taxable income and the amount of his tax savings. Assume an individual employee can put as much as $18,000 into a tax-deferred 401(k) plan. Recall that standard deduction is $6,300 in 2015 and personal exemption amount is $4,000. If necessary, round the answer for tax savings to the nearest cent. Taxable income $ Amount of his tax savings $ How much did it actually cost Brad on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest cent.$