Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $ 60, 000 on this stock as an ordinary loss rather than the typical capital loss Daniel figures that he has a loss of $ 72, 000 on each stock. If Daniel's marginal tax rate is 35 percent and he has $144,000 of other capital gains ( taxed at 15 percent), what is the tax savings from the special tax treatment?

Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $ 60, 000 on this stock as an ordinary loss rather than the typical capital loss Daniel figures that he has a loss of $ 72, 000 on each stock. If Daniel's marginal tax rate is 35 percent and he has $144,000 of other capital gains ( taxed at 15 percent), what is the tax savings from the special tax treatment?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 51P

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