Question

Samuel Jenkins made two investments; the first was 13 months ago and the second was 2 months ago. He just sold both investments and has a capital gain of $3,000 on each. If Samuel is single and has taxable income of $40,800, what will be the amount of capital gains tax on each investment? See Capital Gains table and Taxable income rate table.

Answer 1

Amount of tax of the $ 3,000 long-term capital gain = $ 450
Amount of tax of the $ 3,000 short-term capital gain = $ 349.50