On December 31, 2018,

Q: 3) Ron is single and in 2020 has a taxable income of $480,000. This taxable income includes the…

A: Tax is the payment made to the government on the income earned.

Q: 2-45: Charles and Joan Thompson file a joint return. In 2020 they had taxable income of $92,370 and…

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Q: During 2021 Erin received eligible dividends of $1,000

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Q: In 2023, Kevin

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Q: Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is…

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Q: John and his wife, Maggie, have lived in Hong Kong for over 30 years. John runs a sole…

A: In Hongkong the taxation system is userfriendly.  A fullfledged tax calculator…

Q: Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is made to the S…

A: Partnership is a business type which is carried by two or more partners who will be eligible for any…

Q: Larry L Lewis owns all the stock in LLL Corp. Larry sells all his stock which all qualified under…

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Q: Calculate Ava’s taxes payable on her bonus using her marginal tax rate.

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Q: estate amounting to 125,000,000. This includes

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Q: soul is single

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Q: Maxwell Smart, age 66, has the following information for tax year 2023: 1. Smart Roofing (a sole…

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A: Long term capital gain above $ 80000 = 125000 - 80000 = $ 45000

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A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

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Q: 24%, what is Patricia's gross tax liabi

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Q: Charles and Joan Thompson file a joint return. In 2019 they had taxable income of $92,370 and paid…

A: All amounts are in dollar ($).

Q: Lucy, who is single and

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Q: In 2018, Adele, who is single, acquired section 1244 stock in the initial offering for La Fleur…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.