Problem 1: An investor is in the 33 percent tax bracket and pays long-term capital gains taxes of 15 percent. What are the taxes owed (or saved in the cases of losses) in the cur- rent tax year for each of the following situations?
a) Net short-term capital gains of $3,000; net long-term capital gains of $4,000
b) Net short-term capital gains of $3,000; net long-term capital losses of $4,000
c) Net short-term capital losses of $3,000; net long-term capital gains of $4,000
d) Net short-term capital gains of $3,000; net long-term capital losses of $2,000
e) Net short-term capital losses of $4,000; net long-term capital gains of $3,000
f) Net short-term capital losses of $1,000; net long-term capital losses of $1,500
g) Net short-term capital losses of $3,000; net long-term capital losses of $2,000
Problem 2. You are in the 25 percent income tax bracket. What are the taxes owed or saved if you:
a) Contribute $2,000 to a 410(k) plan
b) Contribute $2,000 to a Roth IRA
c) Withdraw $2,000 from a traditional IRA
d) Withdraw $2,000 from a Keogh account
Problem 3. your traditional IRA account fast stock of GFH which cost $2000, 20 years ago when you were 50 years old. you have been very fortunate and the stock is now worth $23000. you are in 35% income tax bracket and pay 15% on long term capital gains
a) what was the annual rate of growth in the value of the stock?
b) what are the taxes owed if you withdraw the funds?