Question

Mr. and Mrs. Revel had $223,600 AGI before considering capital gains and losses.

Required:

1. On May 8, they recognized an $9,750 short-term capital gain. On June 25, they recognized a $16,950 long-term capital loss. What is the amount and character of each carryforward?
2. On February 11, they recognized a $2,540 long-term capital gain. On November 3, they recognized a $1,960 long-term capital loss. What is the amount and character of each carryforward?
3. On April 2, they recognized a $5,050 long-term capital loss. On September 30, they recognized a $6,000 short-term capital loss. What is the amount and character of each carryforward?
4. On January 12, they recognized a $6,185 short-term capital loss. On July 5, they recognized a $2,410 long-term capital gain. What is the amount and character of each carryforward?

Answer 1

Requirement A

Long term capital loss	-16,950
Short Term Capital gain	9,750
Net long term capital loss	-7,200
Limit is up-to $3000
AGI	223,600
Less: Deductions	-3,000
Adjusted AGI	220,600
Carryforward	4,200

..

Requirement B

Long term capital loss	-1,960
Long Term Capital gain	2,540
Net long tem capital gain	580
AGI	223,600
Less: Deductions	0
Adjusted AGI	223,600

** There is no carry forward, there is $580 net gain

.

Requirement C

.

Short term capital loss	-6,000
Long Term Capital loss	-5,050
Net capital loss	-11,050
deduction upto $3000
AGI	223,600
Less: Deductions	-3000
Adjusted AGI	220,600
Carryforward (11050-3000)	8,050

.

Requirement D

.

Short term capital loss	-6,185
Long Term Capital gain	2,410
Net short term capital loss	-3,775
deduction up-to $3000
AGI	223,600
Less: Deductions	-3000
Adjusted AGI	220,600
Carry forward (3775-3000)	775

answered by: anonymous