document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173407>Question 1173407</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If you are in the 26% tax bracket for ordinary income and have a 15% capital gains rate, how much tax will you save (in $) by waiting for an investment to become long-term before selling it if your taxable profit from this investment is $45,000?\r<BR>\n" );
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document.write( "capital gains rates<BR>\n" );
document.write( "up to $38,700 = 0%<BR>\n" );
document.write( "$38,700-$426,700 = 15%<BR>\n" );
document.write( "over $426,700 = 20%\r<BR>\n" );
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document.write( "not sure how to begin with this problem because there is no example in my book. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #798642 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=798642\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> not sure if this is correct, but .....\r<BR>\n" );
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document.write( "if 45,000 was not capital gains, then it would be taxed as ordinary income at 26% = 11,700\r<BR>\n" );
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document.write( "if 45,000 was capital gains, then it would be taxed as capital gains at 15% = 6,750.\r<BR>\n" );
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document.write( "the savings would be 11,700 - 6,750 = 4,950\r<BR>\n" );
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document.write( "here's a reference that i think might help.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://www.investopedia.com/ask/answers/052015/what-difference-between-income-tax-and-capital-gains-tax.asp\" target = \"_blank\">https://www.investopedia.com/ask/answers/052015/what-difference-between-income-tax-and-capital-gains-tax.asp</a>\r<BR>\n" );
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document.write( "the general idea, as i see it.....\r<BR>\n" );
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document.write( "if the asset is held less than a year, then it is taxed as ordinary income.<BR>\n" );
document.write( "if the asset is held more than a year, then it is taxed as capital gains. </SPAN>\n" );
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