On December 7 of the tax year, S (a single taxpayer) decided to sell all of the stock that she owns and reinvest the proceeds in state of Colorado bonds. Information about the stock is provided below: Corporation FMV Basis Holding Period ABC $180,000 $130,000 11 months LMN 200,000 255,000 5 years XYZ 382,000 300,000 2 years She is willing to sell some of the stock this year and the remaining stock next year if it is more advantageous to spread the sales over two years. Assume the fair market value of the stock will not change and her regular tax rate is 32% (and will be 32% next year). (Disregard present value calculations and the medicare tax on net investment income.) Determine the change in her income tax for the two years combined if she sells ABC and LMN this year and XYZ in March of next year.
On December 7 of the tax year, S (a single taxpayer) decided to sell all of the stock that she owns and reinvest the proceeds in state of Colorado bonds. Information about the stock is provided below:
|
Corporation |
FMV |
Basis |
Holding Period |
|
ABC |
$180,000 |
$130,000 |
11 months |
|
LMN |
200,000 |
255,000 |
5 years |
|
XYZ |
382,000 |
300,000 |
2 years |
She is willing to sell some of the stock this year and the remaining stock next year if it is more advantageous to spread the sales over two years. Assume the fair market value of the stock will not change and her regular tax rate is 32% (and will be 32% next year). (Disregard present value calculations and the medicare tax on net investment income.) Determine the change in her income tax for the two years combined if she sells ABC and LMN this year and XYZ in March of next year.
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