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Leyla has invested in a stock in January 2019. She has paid $20 per share and...

Leyla has invested in a stock in January 2019. She has paid $20 per share and has purchased 500 shares. She sold her shares in December 2019 for $24 per share. In 2019, she received $0.60 dividend per share. Assume that her marginal tax rate is 40% and she is not elligible for dividend tax credit. Calculate the total dollar amount of taxes she needs to pay in her investment.

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Answer #1

Total Income from dividends that are eligible for tax purpose :-

Here She is not eligible for dividend tax credit.

Here income from stock is two ways. there are

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