Question

Lauren has 1 dependent child and will file as head of household.In addition to income from wages,she has a 1000 capital gain from the sale of stock that she owned for 8 months. Her taxable income is 72000,so her marginal tax rate is 22%. Lauren tax on her capital gain is:a) 0: b) 150:c) 220:d)280

Answer 1

Given

Capital gain which has been held for 8 months = 1000

Taxable Income = 72000

Marginal Tax Rate = 22%

Short Term Capital Gain : If the Capital Asset is held for less than or equal to 12 months, then such gain is treated as short term capital gain.

The Tax on Short term capital Gain in India is 15% on capital gain.

=1000*15%

=150

Hence Option b is the correct option

NOTE: Since any information related to assessee is not given, i have assumed that assessee is from India.