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Question
an investor bought 100 shares of a reit for $54 a share and two years later sold the shares for $62. the reit annually distributed $4.00 per share ($400) consisting of $2.00 return of capital $200), $1.20 ($120) in income and $0.80 ($80) in long-term capital gains. the investors income tax bracket is 30%. the long-term capital gains tax rate is 15 percent. what is the investors second years tax obligation?
Answer
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