Amanda, whose tax rate is 32%, has NSTCL of $25,000, a $30,000 LTCG from sale of a rare coin held 15 months and a $18,000 LTCG from the sale of stock held for three years. By what amount will Amanda's tax liability increase?

A) $3,450
B) $4,100
C) $5,880
D) $4,300


B) $4,100

The $25,000 NSTCL is offset against the $25,000 of the collectibles gain in the 28% group. Amanda's tax liability increases by $4,100 [($5,000 × .28) + ($18,000 × .15)].

Business

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