Brianna purchases stock for $8,000. The stock appreciates (grows) at a 6% rate before taxes. Brianna sells the stock ten years later for $14,327. Brianna has a 37% marginal tax rate, but the stock sale is a LTCG taxed at 20%. Ignore the 3.8% Medicare surtax on net investment income. What are Brianna's after-tax proceeds?
What will be an ideal response?
$8,000 [(1.06)10 (1 - 0.20) + 0.20] = $13,061 using the Deferred Model
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