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Samuel Jenkins made two investments, the first was 14 months ago and the second was two...

Samuel Jenkins made two investments, the first was 14 months ago and the second was two months ago. He just sold both investments and has a capital gain of $11,500 on each. If Samuel is in the 28 percent tax bracket, what will be the amount of capital gains tax on each investment?

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Answer #1
The investment purchased 14 months ago would be taxed as long term capital gain and sale is made beyond 12 months
This long term capital gain would be taxed at preferential rate of 15%
Tax on investment purchased 14 months ago 11500*15%
Tax on investment purchased 14 months ago $1,725
The investment purchased two months ago would be taxed as short term capital gain
The amount of tax is calculated as 28% of capital gain
Tax on investment purchased 2 months ago 11500*28%
Tax on investment purchased 2 months ago $3,220
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