Samuel Jenkins made two investments; the first was 13 months ago and the second was two months ago. He just sold both investments and has a capital gain of $3,000 on each. If Samuel is single and has taxable income of $40,000, what will be the amount of capital gains tax on each investment?

Amount of tax of the $ 3,000 long-term capital gain = $ 450

Amount of tax of the $ 3,000 short-term capital gain = $ 349.50

Step-by-step explanation:

A. Investment made 13 months ago:

The Tax Rate for long-term capital gains for a single that has a taxable income of $ 40,000 is 15%; in consequence, the capital gains tax amount is:

3,000 * 0.15 = $ 450

B. Investment made 2 months ago:

The profit on an asset sold after less than a year of ownership is generally treated for tax purposes as if it were wages or salary. You're taxed on the short-term capital gain at the same rate as for your regular earnings.

Let's calculate the tax rate, using the brackets for a single that has a taxable income of $ 40,000 in 2019, this way:

in consequence,

Percentage of tax for regular earnings = 4,658.50/40,000 * 100

Percentage of tax for regular earnings = 0.1165 * 100 = 11.65%

Amount of tax of the $ 3,000 short-term capital gain = 3,000 * 0.1165

Amount of tax of the $ 3,000 short-term capital gain = $ 349.50

for finding the midpoint of any given 2 pair of points simply add the respective x coordinates with other x coordinate and the y coordinate with other y coordinate and divide them by 2

in your question it will be :

(3+1)/2 for the x coordinate of mid point i.e 2

[8+(-4)]/2 for the y coordinate of midpoint i.e 2

so coordinates of mid point of points (3,8) and (1,-4) will be (2,2)