Question

Stuart is in the 25% tax bracket. Recently, he sold stock that he had held longer than a year for a gain of $20,000. How much tax will Stuart pay on this gain?

Answer 1

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Answer:

$5000

Explanation:

25% × $20,000 = $5,000

Stuart will pay $5000 tax on his capital gain.

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To find the tax, multiply the tax rate by the taxable amount.