Robert and Becca file jointly. They have taxable income of $60,000 in 2018 (before considering any capital gains or losses). They have a long-term capital gain of $28,000 and a long-term capital loss of $17,000 on sales of stock in the current year. What will their capital gains tax be in the current year?

$0

$1,650

$2,200

$4,200

None of the above is correct

The correct amount of capital gain tax for the current year would be B) $1650.

Explanation:

Capital gain can be described as the profit that a person or company earns when sale price of the asset is more than the original purchase price of the asset. Capital gain tax can be defined as the tax that is levied on the capital gain earned by a person or company.

Given information -

Taxable income - $60,000

Long term capital gain - $28,000

Long term capital loss - $17,000

Tax that will be levied as per the income would be 15%,

then capital gain tax =

($28,000 - $17,000) x 15%

$9000 x 15%

= $1650