*HELP*

Henrich is a single taxpayer. In 2021, his taxable income is $455,000. 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 for reference. (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.)
a. All of his income is salary from his employer.
Income tax _______
Net investment income tax ______
Total tax liability __________

b. His $455,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.
Income tax _______
Net investment income tax ______
Total tax liability __________

c. His $455,000 of taxable income includes $49,000 of long-term capital gain that is taxed at preferential rates.
Income tax _______
Net investment income tax ______
Total tax liability __________

d. Henrich has $197,500 of taxable income, which includes $51,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.
Income tax _______
Net investment income tax ______
Total tax liability __________

Respuesta :

The Investment Income, if any (g) $380 and The Net Income tax payable is $41,516.75

How to find the Total Income tax?

A. The Taxable Income (a) $425,000  

The Prefrentially taxed income (b) $0  

The Income taxed at ordinary rates ( c) $425,000  

The Tax on c above (d)

$124,469.95 = $120,529.75 + [($425,000 - $415,050) x 39.6%]

The Tax on b above ( e) is $0  

Thus, the Total Income tax (f) is $124,469.95 (d + e)

The Investment Income, if any is $0 No Investment Income

The Net Income tax payable is $124,469.95  

B. The Taxable Income (a) $425,000  

The Prefrentially taxed income (b) $2,000  

The Income taxed at ordinary rates ( c) $423,000  

The Tax on c above (d);

$123,677.95 = $120,529.75 + [($423,000 - $415,050) x 39.6%]

The Tax on b above ( e) ;

$400 = $2,000 x 20%, Since marginal rate is 39.6%

The Total Income tax (f) $124,077.95 (d + e)

The Investment Income, if any (g) $76

($2,000 x 3.8% = $76)

The Net Income tax payable is $124,153.95 (f + g)

C. The Taxable Income (a) $425,000  

The Prefrentially taxed income (b) $55,000  

The Income taxed at ordinary rates ( c) $370,000  

The Tax on c above (d);

$105,629.25 = $46,278.75 + [($370,000 - $190,150) x 33%]

The Tax on b above ( e);

$8,747.50 [($45,050 x 15%) + ($9,950 x 20%)]

The Total Income tax (f) $114,376.75 (d + e)

The Investment Income, if any (g) $2,090

($55,000 x 3.8% = $2,090)

The Net Income tax payable $116,466.75 (f + g)

D. The Taxable Income (a) $195,000  

The Prefrentially taxed income (b) $50,000  

The Income taxed at ordinary rates is ( c) $145,000  

The Tax on c above (d);

$33,636.75 = $18,558.75 + [($145,000 - $91,150) x 28%]

The Tax on b above ( e);

$7,500.00 = $50,000 x 15%

The Total Income tax (f) is $41,136.75 (d + e)

The Investment Income, if any (g) $380

The Net Income tax payable is $41,516.75 (f + g)

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