Question

Maria, who is single, had the following items for 2015: Salary $80,000 Loss on sale of § 1244 small business stock acquired 3 years ago (60,000) Stock acquired 2 years ago became worthless during the year (5,000) Long-term capital gain 25,000 Nonbusiness bad debt (15,000) Casualty loss on property held 6 months (6,000) Casualty gain on property held 4 years 4,000 Determine Maria’s adjusted gross income for 2015.

Answer 1

solution :
given data
Maria, who is single, had the following items for 2015
Salary $80,000
Loss on sale of § 1244 .
small business stock acquired 3 years ago (60,000)
Stock acquired 2 years ago became worthless during the year (5,000)
Long-term capital gain 25,000
Nonbusiness bad debt (15,000)
Casualty loss on property held 6 months (6,000)
Casualty gain on property held 4 years 4,000
Determination of Maria’s adjusted gross income for 2015:
Capital gains and losses:

Long-term capital gain ($25,000 + $4,000)$29,000

Less: Long-term capital loss

[($60,000 – $50,000) + $5,000] . ($15,000)

Net long-term capital gain $14,000

Less: Short-term capital loss

($15,000 + $4,000*) . (19,000)

Net capital loss

(limited to $3,000) . (5,000) (3,000)

Adjusted gross income $27,000