Henrich is a single taxpayer. In 2023, his taxable income is $542,500. What are 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.
a. All of his income is salary from his employer. Assume his modified AGI is $570,000.
Income Tax = ?
Net Investment Income Tac = ?
c. His $542,500 of taxable income includes $64,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $570,000.
Income Tax = ?
Net Investment Income Tax = ?
d. Henrich has $201,250 of taxable income, which includes $52,500 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $222,500.
Income Tax = ?
Net Investment Income Tax = ?
