Question

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 2019 $3,000 capital loss deduction.
e.    Jenny has a 2019 $6,000 net capital gain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If a taxpayer realizes both capital gains and capital losses in the same year, the losses offset (cancel out) the gains. The amount remaining after offsetting is the net gain or net loss used in the calculation of taxable gains.

For individuals, a net loss can be claimed as a tax deduction against ordinary income, up to $3,000 per year ($1,500 in the case of a married individual filing separately). Any remaining net loss can be carried over and applied against gains in future years.

Hence the answer is option d-Jenny has a 2019 $3000 capital loss deduction

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
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
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...
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...
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.
Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain,...
Mr. Fox, a single taxpayer, recognized a $64,000 long-term capital gain, a $14,300 short-term capital gain, and a $12,900 long-term capital loss. Compute Mr. Fox’s income tax and Medicare contribution tax if his taxable income before consideration of his capital transactions is $441,000. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
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...
An individual taxpayer has the following gains and losses from property transactions. What is the effect...
An individual taxpayer has the following gains and losses from property transactions. What is the effect on the taxpayer’s taxable income? $ 4,000 Long-term capital gain 7,000 Long-term capital loss 10,000 Section 1231 gain 6,000 Section 1231 loss 3,000 Short-term capital gain 6,000 Short-term capital loss
In 2017, Richard had taxable income of $75,000. This amount included short-term capital losses of $3,000...
In 2017, Richard had taxable income of $75,000. This amount included short-term capital losses of $3,000 and long-term capital losses of $7,000. He had no other capital transactions in prior years. What is Richard's capital loss carryover to 2018? $0 $1,000 $4,000 $7,000
Victor is a single taxpayer in the 24% marginal tax bracket. In 2019, he sold stock...
Victor is a single taxpayer in the 24% marginal tax bracket. In 2019, he sold stock shares for a long-term capital gain of $8,500. He also sold some financial services stock for a long-term capital loss of $2,000. In addition, he sold the home that he had lived in for the past 3 years and experienced a $15,000 gain on the house. 1. He has a net taxable long-term capital_____ (fill gain or loss in this blank) for the year...
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT