Question

During 2017 William had the following sales of capital assets. In addition, he had other taxable income, excluding these gains of $100,000 putting him in the 28% tax bracket.

1. Sale of Alpha Corp. Acquired 1/2/17 sold 11/11/17 Gain $5,000

2. Sale of Omega Corp. Acquired 9/12/10 sold 10/12/17 Gain $16,000

3. Sale of Delta Corp Acquired 3/14/13 sold 10/2/17 Gain $2,000

4. Sale of Beta Corp Acquired 1/5/17 sold 7/3/17 Loss ($1,000)

Requirements:

1. Determine William's capital gain or loss

2. Determine William's taxable income

-Answer & Please Show Calculations

Answer 1

Ans 1
Transaction	Nature	Gain/(loss)
1	Short Term Caital gain	$5,000
2	Long Term Caital gain	16000
3	Long Term Caital gain	2000
4	Short Term Caital Loss	-1000
	Net Capital Gain	$22,000
Short term capital gain is the gain which occurs if the security is sold
within one year if its more than it is treated as long term capital gain.
ans 2
Taxable Income	$122,000
100000+22000
If any doubt please comment