Hello all,I am a neophite to the tax implications of investing and need some help understanding how this all works.Okay, let's say that I had a very good year and out of foolishness (or stupidity, take your pick), sold enough in my positions to realize short-term capital gains totaling $100,000 for the year. I am in the 15% tax bracket. Let's assume that my Adjusted Gross Income before the gain is included is $25,000. With the proceeds from the gain, I put down $60,000 on a $120,000 house and finance the remainder.Realzing that this is, to say the least, a foolish situation, what are the tax implications here? Is the entire $125,000 Adjusted Gross Income taxed at 39.6% (or higher) or is there a double whammy of 28% on the $100,000 and 39.6% on the remaining $85,400?Any enlightenment is greatly appreciated.
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