Mike sold the following shares of stock in 2018:Date PurchasedAdjusted BasisDate SoldSales ProceedsS Corp.7/25/2011$4,8009/25$9,500O Corp.5/17/20131,6006/071,100C Corp.1/04/20153,9008/257,500K Corp.11/02/20172,50010/011,800What are the tax consequences of these transactions, assuming his marginal tax rate is (a) 32% and (b) 37%? Ignore the medicare tax on net investment income.
What will be an ideal response?
| S-LTCG: | $4,700 |
| O-LTCL: | ( 500) |
| C-LTCG: | 3,600 |
| Net long-term capital gain | $7,800 |
| K-STCL: | ( 700) |
| Adjusted Net Capital Gain | $ 7,100 |
| (a) Tax on ANCG at 15% | $1,065 |
| (b) Tax on ANCG at 20% | $1,420 |
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