Question

During the year, Eugene had the four property transactions summarized on the next page. Eugene is a collector of antique glassware and occasionally sells a piece to get funds to buy another. What are the amount and nature of the gain or loss from each of these transactions?

Property	Date Acquired	Date Sold	Adjusted Basis	Sales Price
Antique vase	06/18/08	05/23/19	$37,000	$42,000
Blue Growth Fund (100 shares)	12/23/10	11/22/19	22,000	38,000
Orange bonds	02/12/11	04/11/19	34,000	42,000
Green stock (100 shares)	02/14/19	11/23/19	11,000	13,000

Answer 1

• All the assets are capital assets because they do not fit any of the items listed in § 1221 as not capital assets.
• The antique vase is a "collectible." Therefore, the $5,000 gain ($42,000 sale price − $37,000 basis) is a 28% long-term capital gain that would first be netted against any 28% long-term capital loss.
• The Blue Growth Fund $16,000 gain ($38,000 sale price − $22,000 basis) is a long-term capital gain that is potentially taxable at 0%, 15%, and/or 20%.
• The Orange bonds are sold for a $8,000 gain ($42,000 proceeds − $34,000 basis). The gain is a long-term capital gain potentially taxable at 0%, 15%, and/or 20%.
• The sale of the Green stock results in a $2,000 ($13,000 sale price − $11,000 basis) short-term capital gain because the stock was held one year or less.