Question

Henrich is a single taxpayer. In 2019, his taxable income is $458,000. What is his income...

Henrich is a single taxpayer. In 2019, his taxable income is $458,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.)

d. Henrich has $199,000 of taxable income, which includes $51,600 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.

Homework Answers

Answer #1

Req.( D)

Income Tax $ 37,290.26
Net Investment Income Tax $ 1960.80

Explanation:

1)

Taxable Income $ 199,000
Less: Preferentially Taxed Income 51,600
Income Taxed at Ordinary Rates $ 147,400

2) Tax Bracket:

24% = $84,201 to $160,725 = $14,382.50 plus 24% of the amount over $84,200

3) Income tax on ordinary income:

= $ 14,382.50 + ( $ 147,400 -84,201 × 24%)

= $ 14,382.50 + 15,167.76

= $ 29,550.26

4) Income Tax on Pref. Income:

= $ 51,600 × 15%

= $ 7740

5) Total Tax Liability:

= $ 29,550.26 + 7740

= $ 37,290.26

6) Net Investment Tax Liability:

Since Henrich’s modified AGI well exceeds $200,000, the entire $51,600 long-term capital gain is subject to the 3.8% net investment income tax.

($51,600 x 3.8% = $ 1960.80)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Henrich is a single taxpayer. In 2019, his taxable income is $462,500. What is his income...
Henrich is a single taxpayer. In 2019, his taxable income is $462,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) c. His $462500 of taxable income includes $64000 of long-term capital gain that is taxed...
Henrich is a single taxpayer. In 2019, his taxable income is $457,500. What is his income...
Henrich is a single taxpayer. In 2019, his taxable income is $457,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) rev: 02_29_2020_QC_CS-202942 c. His $457,500 of taxable income includes $54,000 of long-term capital gain that...
Henrich is a single taxpayer. In 2018, his taxable income is $453,500. What is his income...
Henrich is a single taxpayer. In 2018, his taxable income is $453,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places. Leave no answer blank. Enter zero if applicable.) c. His $453,500 of taxable income includes $46,000 of long-term capital gain that is taxed...
[The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2017,...
[The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2017, his taxable income is $425,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places. Leave no answer blank. Enter zero if applicable.) a. All of his income is salary from his employer. b. His $425,000 of taxable...
Henrich is a single taxpayer. In 2019, his taxable income is $454,500. What is his income...
Henrich is a single taxpayer. In 2019, his taxable income is $454,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? His $454,500 of taxable income includes $48,000 of long-term capital gain that is taxed at preferential rates. Note: some of his preferentially taxed income will be in the 15% bracket and some in the 20% bracket. What is the Income tax? What is the Net investment income tax? What is...
7-Henrich is a single taxpayer. In 2019, his taxable income is $452,000.     His $452,000 of taxable income...
7-Henrich is a single taxpayer. In 2019, his taxable income is $452,000.     His $452,000 of taxable income includes $55,000 of long-term capital gain that is taxed at preferential rates.  What is his tax liability (including the net investment income tax)? 8-Brooke works for Company A for half of 2019, earning $62,000 in salary and she works for Company B for the second half of 2019, earning $90,000 in salary. What is Brooke’s FICA tax obligation for the year?
Question 1: In 2018, Lisa and Fred, a married couple, have taxable income of $300,000. If...
Question 1: In 2018, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000. What is the couple’s marriage penalty or benefit? Question 2: Henrich is a single taxpayer. In 2018, his taxable income is $450,000. What are his income tax and net investment income tax liability in each of the following alternative scenarios?...
Lacy is a single taxpayer. In 2018, her taxable income is $47,600. What is her tax...
Lacy is a single taxpayer. In 2018, her taxable income is $47,600. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference.(Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Her $47,600 of taxable income includes $3,600 of qualified dividends. c. Her $47,600 of taxable income includes $19,900 of qualified dividends
Henrich has $195,000 of taxable.income, which includes $50,000 of long-term capital gain that is taxed at...
Henrich has $195,000 of taxable.income, which includes $50,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000
1.Steve’s tentative minimum tax (TMT) for 2019 is $242,000. What is his AMT if his regular...
1.Steve’s tentative minimum tax (TMT) for 2019 is $242,000. What is his AMT if his regular tax is $230,000? 2.Henrich is a single taxpayer. In 2019, his taxable income is $451,000.     His $451,000 of taxable income includes $55,000 of long-term capital gain that is taxed at preferential rates.  What is his tax liability (including the net investment income tax)? 3.Brooke works for Company A for half of 2019, earning $60,000 in salary and she works for Company B for the second half...