Question

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.

Homework Answers

Answer #1

Answer

Total carried forward loss = Net Short term Capital loss+Net Long term capital loss

= $5,000+$17,000

=$22,000

Hence,capital loss is to be carried forward to 2018 =$22,000

In 2018:

Now set off from short term gain

=$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.

=$2000+2240+1400

yearly limit for single, household, widow, married filling jointly is 3000, and if in any year net loss is over from capital gain then it is to be forwarded to next year, and set off as if it is incurred in that next year.

Hence

First 2000 of short term is set off from short term gain

And next 1000 of short term is set off against 0%/15%/20% long term capital gain

Then,For 2019 carried forward from 2017 will be 2000(short term), 17000 (Long term) Loss.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
) Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of...
) Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct? a. The $1,500 loss will first be offset by the $4,000 short-term gain. b. The $1,500 loss will first be offset by the $5,000 long-term gain. c. The $4,000 short-term gain will first be offset by the $5,000 long-term gain. d. The taxpayer will have a net short-term...
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...
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...
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...
Tyler has the following capital gains and losses: Short Term Capital Gain: $10,000 Short Term Capital...
Tyler has the following capital gains and losses: Short Term Capital Gain: $10,000 Short Term Capital Loss: ($4,000) Long Term Capital Gain: $15,000 What is the total capital gains / losses? What is the tax rate?
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 year, Mr. G had the following capital transactions: Long-Term Long-Term Short-Term (28% Basket) (15%...
During the year, Mr. G had the following capital transactions: Long-Term Long-Term Short-Term (28% Basket) (15% Basket) Gains $  9,000 $15,000 $  8,000 Losses 10,000 10,000 12,000 Determine the overall result of the transactions. $4,000 long-term capital gain. $0 long-term capital gain. $1,000 short-term capital loss. $5,000 long-term capital gain.
Jason, an Australian resident for tax purposes, has carried forward ordinary capital losses from the year...
Jason, an Australian resident for tax purposes, has carried forward ordinary capital losses from the year ended 30 June 2017 of $8,000 and carried forward collectable losses of $4,000 from the year ended 30 June 2016. On 22 October 2019 he sold land for $76,000 that he purchased on 7 March 2014 for $44,000. He also sold an antique on 12 February 2020 for $3,000 that he purchased for $800 on 8 December 2008. What is his net capital gain...
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...