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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago, 1 Day Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
bruce wilson won 2 million in the state lottery. the lottery pays out the prize money in 20 annual installments of 100,000 each. After receiving three 100,000 installments, bruce sold the remaining 1.7 million of payments for 1 million. He wants to report the 1 million as long-term capital gain on his tax return, and pay tax at the 15 percent long term capital gains tax rate rather than at his 35 percent marginal tax rae for ordinary income. Bruce requests you to research the law regarding the tax treatment of the 1 million and advise him on whether the payment qualifies for the 15 percent tax rate or would be taxed as ordinary income at his 35 percent marginal tax rate.
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