Henrich is a single taxpayer. In 2018, his taxable income is $459,000. What is his...
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Henrich is a single taxpayer. In 2018, his taxable income is $459,000. 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.
c. His $459,000 of taxable income includes $57,000 of long-term capital gain that is taxed at preferential rates.
d. Henrich has $199,500 of taxable income, which includes $51,800 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.
2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: The tax is: S 9525 S 38,700 $ 82.500 $157.500 $200,000 $500,000 But not over: S 9.525 S 38,700 S 82,500 $157,500 $200,000 $300,000 10% of taxable income $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% ofthe excess over $38,700 $14,089.50 plus 24% of the emess over $82,500 $32,009.50 plus 32% of the excess over $157,500 $45,609.50 plus 35% of the etess over $200,000 $150,609.50 plus 37% of the excess over $500,000
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