Question

Joe had $16,000 of net short-term capital loss as the direct result of the netting process...

Joe had $16,000 of net short-term capital loss as the direct result of the netting process in 2018. In 2019, before considering any carryover amounts, Joe has $15,000 of long-term capital loss and $26,000 of long-term capital gain. Which of the following statements is correct?

A. Joe reports an $11,000 net long-term capital gain in 2019.

B. Joe had a $13,000 short-term capital loss carryover to 2019.

C. Answers “a” and “c” are both correct.

D. Joe reports a $2,000 net short-term capital loss in 2019.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option (d).

In case if there are both Short term and Long term capital loss and there is only long term capital gain against which losses has to be set off, Long term capital loss has to be set off firstly against Long term capital gain. If after setting off Long term capital loss against Long term capital gain, balance of Long term capital gain available can be used to set off short term capital loss. If there is any Short term capital loss even after setting off, balance loss has to be carried forward.

Therefore, long term capital loss of $15000 has to be set off against Long term capital gain of $26000. After setting off Long term capital loss, there is still balance of $11000 which can be used for setting off Short term capital loss to that extent. After setting off Short term capital loss against Long term capital gain, remaining loss of $2000 has to be carried forward to next year.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 2018, Jenny, a single taxpayer, had a $15,000 net short-term capital loss and taxable income...
In 2018, Jenny, a single taxpayer, had a $15,000 net short-term capital loss and taxable income of $120,000. In 2019, Jenny has an $18,000 long-term capital gain on one transaction and no other capital gain or loss transactions. Which of the statements below is correct? a.    Jenny has a 2019 $18,000 net capital gain. b.    Jenny has a 2019 $9,000 net capital loss. c.    Jenny has a 2019 $9,000 net capital gain. d.    Jenny has a...
During the current year, Nancy had the following transactions: Short-term capital loss ($2,400) Short-term capital gain...
During the current year, Nancy had the following transactions: Short-term capital loss ($2,400) Short-term capital gain 2,000 Short-term capital loss carryover from 2 years ago (1,400) Long-term capital gain (15% basket) 3,800 Long-term capital loss (28% basket) (8,000) Nancy is in the 35% marginal tax bracket for the current year. What is the amount of her capital loss deduction in the current year, and what is the amount and character of her capital loss carryover?
During 2018, Wyatt Corporation (a calendar year taxpayer) had an excess Long-Term Capital Loss of $20,000...
During 2018, Wyatt Corporation (a calendar year taxpayer) had an excess Long-Term Capital Loss of $20,000 which it could not carry back to prior tax years. For 2019, Wyatt Corporation had a Long-Term Capital Gain of $50,000 and a Short-Term Capital Gain of $15,000. As a result of these transactions, for 2019, Wyatt Corporation has a net: Short-Term Capital Gain of $15,000 Long-Term Capital Gain of $45,000 Short-Term Capital Gain of $45,000 Long-Term Capital Gain of $50,000
Tax Treatment of Capital Losses) In 2017, Steven Spielberg (single) has $5,000 of net short-term capital...
Tax Treatment of Capital Losses) In 2017, Steven Spielberg (single) has $5,000 of net short-term capital loss and $17,000 of net long-term capital loss. In 2018, he has $2,000 of net short-term capital gain, $8,000 of net 28% long-term capital gain, and $4,000 of net 0%/15%/20% long-term capital gain. Determine the type (short-term or long-term) and amount of capital loss to be carried forward to 2018 and 2019, respectively.
Janay Lewis has the following capital gain and loss transactions for 2019. Short-term capital gain $150,000...
Janay Lewis has the following capital gain and loss transactions for 2019. Short-term capital gain $150,000 Short-term capital loss (360,000) Long-term capital gain (28%) 1,200,000 Long-term capital gain (25%) 480,000 Long-term capital gain (15%) 600,000 Long-term capital loss (28%) (450,000) Long-term capital loss (15%) (900,000)                  After the capital gain and loss netting process, what is the amount and character of Janay Lewis' gain or loss Long-term capital gain (28%)                  
In 2019, Rosalva sold stock considered short-term for a gain of $985 and stock considered long-term...
In 2019, Rosalva sold stock considered short-term for a gain of $985 and stock considered long-term for a loss of $3,940. She also had a $3,690 short-term loss carryover from 2018 and a $1,395 long-term loss carryover from 2018. Required: What amount will be shown as a short-term gain (loss) for 2019? What amount will be shown as a long-term gain (loss) for 2019? How much of the loss is deductible in 2019? What is the amount of long-term carryover...
Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term...
Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Ostrich has $425,000 in taxable income from other sources. Prior years’ transactions included the following: 2014 net short-term capital gains $10,000 2015 net long-term capital gains 18,000 2016 net long-term capital gains 15,000 2017 net short-term capital gains 25,000 2018 net long-term capital gains 5,000 Required: a. How are the capital gains and losses treated on Ostrich’s 2019...
Problem 17-37 (LO. 2) During 2017, Gorilla Corporation has net short-term capital gains of $15,000, net...
Problem 17-37 (LO. 2) During 2017, Gorilla Corporation has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following: 2013 net short-term capital gains $40,000 2014 net long-term capital gains 18,000 2015 net short-term capital gains 25,000 2016 net long-term capital gains 20,000 If an amount is zero, enter "0". a. How much is Gorilla's net capital loss for 2017? $ What is the...
1. George had the following capital gain transactions in 2019: Long term capital gain        $11,000.00 Long term...
1. George had the following capital gain transactions in 2019: Long term capital gain        $11,000.00 Long term capital loss        ($25,000.00) Short term capital gain        $13,000.00 Short term capital loss        ($5,000.00) What is George's net capital gain/loss for the year? 2. In June of 2017, Joe gave Charles a painting.  On the date of the gift, the painting had an adjusted basis of $15,000.00 and FMV if $10,000.00.  If Charles sold the painting on  March 11, 2019 for $5,000.00, what is Charles recognized gain or loss? 3. Jon...
Marcus has the following capital gains and losses during the current year: 25% Long-term capital loss...
Marcus has the following capital gains and losses during the current year: 25% Long-term capital loss $(9,000) Regular (0/15/20%) Long-term capital loss            (3,000) Regular (0/15/20%) Long-term capital gain 2,000 28% Collectibles gain 1,000 Short-term capital loss (2,000) Short-term capital gain 4,000 After netting, what effect will Marcus’s capital gains and losses have on his AGI this year? Group of answer choices Increase it by $9,000 None of these Reduce it by $3,000 Reduce it by $5,000 They will not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT