Teddy, a single taxpayer with no dependents, with an AGI of $500,000 has the following this year:
$18,000 in long-term capital gains
$4,000 in long-term capital losses
$6,000 in short-term capital gains
$8,000 in short-term capital losses
What are the tax implications?
A) Because of Ted's marginal tax rate, his net capital gains may be taxed as high as 20%.
B) Because of Ted's marginal tax rate, his net capital gains will be taxed at 15%.
C) Ted's tax rate on the net capital gains may be as high as 23.8%.
D) Because of Ted's marginal tax rate, he will not be taxed on net capital gains.