Daniel is considering selling two stocks that have not performed well over recent years. 6friend recently informed Danlel that one of his stocks has a special designation, which allowshim to treat a loss up to $54,000 on this stock as an ordinary loss rather than the typicalcapital loss. Daniel figures that he has a loss of $64, 800 on each stock. If Daniel's marginal taxrate is 35 percent and he has $129,600 of other capital gains (taxed at 15 percent), what isthe tax savings from the special tax treatment?

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Answered: Daniel is considering selling two…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 86DC: Marlo and Merlins son, Alex, needs 20,000 to start a business. They have 30,000 in securities that...

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Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $76,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $91,200 on each stock. If Daniel’s marginal tax rate is 35 percent and he has $182,400 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment?
Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $64,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $76,800 on each stock. If Daniel's marginal tax rate is 35 percent and he has $153,600 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment? Lassensti
Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $30,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $36,000 on each stock. If Daniel's marginal tax rate is 35 percent and he has $72,000 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment? Tax savings
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Knowing that capital losses are applied against capital gains, what would be the overall taxes payable if Max sold shares in another company called Save The Day Inc. which resulted in a capital gain in 2021 of $50,000 and the shares .Calculate the amount of taxes payable on the sale of the shares;
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Sam Scurry bought several hundred shares of annable.com at a price of $41.40 about 5 years ago that sold for $64.20 per share today. Sam pays capital gains tax at the rate of 19% and pays tax on dividends at the rate of 27%. Suppose that annable.com elects not to pay a dividend this year and that Sam sells 19 shares of stock. How much of the total amount of proceeds from the sale will Sam get to keep?
Wu of Troy, New York, has $5,000 that he wants to invest in the stock market. Ji is in college on a scholarship and does not plan to use the $5,000 or any dividend income for another five years, when he plans to buy a home. He is currently considering a small company stock selling for $25 per share with an EPS of $1.25. Last year, the company earned $900,000, of which $250,000 was paid out in dividends. 1, What classification of common stock would you recommend to Ji? 2, Calculate the P/E ratio and the dividend payout ratio for this stock. Round your answers to the nearest whole number. 3, Given this information and your recommendation, would this stock be an appropriate purchase for Ji? Why or why not?
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