A TP received $90,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the year (she did not sell any of the stock), and $10,000 of interest income from municipal bonds. What is the TP's reported gross income

Respuesta :

Answer:

$10,000

Explanation:

Capital gains tax only becomes due when you sell your investment. Therefore TP won't owe any tax while her stock gains value inside the portfolio. However, once she sell her shares, the profit must be reported on your tax return.

As a result, TP will only pay a tax on her profit at the capital gains rate., after she sells and the $5000 cannot be taxed yet.

Her total income is therefore received $90,000 compensation from her employer and $10,000 of interest income from municipal bonds.