Problem
Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Fox's income tax and Medicare contribution tax if his taxable income before consideration of his capital transactions is $421,000. Assume the taxable year is 2016. Use Individual tax rate schedules.
IncomeTax _____
Capital Gain Tax _____
Medicare
Contribution Tax______
Total ______
Mr. and Mrs. Scoler sold commercial real estate for $685,000. Their adjusted basis at date of sale was $544,700 ($596,600 cost - $51,900 straight-line accumulated depreciation). Compute the Scolers' income tax and Medicare contribution tax on their recognized gain assuming that this sale was their only property disposition this year, and their marginal income tax rate on ordinary income is 39.6 percent. Assume the taxable year is 2016.