Question 31) A building used in a business is sold after five years of use for a gain. The gain will be treated as a long-term capital gain. 32) A married couple in the top tax bracket has a new baby. Due to the birth of the baby their taxable income will be reduced in 2014 by $3,950. 33) Mia is a single taxpayer with projected AGI of $250,000 in 2014. She is considering selling a long-term investment before year-end. She expects to realize a gain of $25,000. If Mia sells the investment by December 31, her 2014 taxable income will increase by $25,000. 34) Charishma is a taxpayer with taxable income exceeding $500,000. She sells a stock for a $50,000 gain. She acquired the stock 13 months earlier. The gain will be taxed at the 20% rate. 35) Generally, when a married couple files a joint return, each spouse is liable for one-half of the entire tax and any penalties incurred.