For each of the following cases, determine the amount of capital gain or loss to report in each year (after taking into account any applicable carrybacks) and the capital loss carryforward to 2016.
| Capital gain or loss for year indicated | |||||||||||||||||||
| Corporation | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||
| A | $ | 5,950 | $ | 7,090 | $ | (11,850 | ) | $ | 8,810 | $ | 3,750 | $ | (1,160 | ) | |||||
| B | 5,350 | 3,820 | 3,370 | 7,750 | (27,140 | ) | 2,750 | ||||||||||||
| C | 7,870 | 9,850 | (3,320 | ) | 2,100 | (26,770 | ) | 11,350 | |||||||||||
| D | (64,710 | ) | 8,650 | 3,790 | 11,450 | 13,700 | 2,220 | ||||||||||||
Assume that 2010 is the first year of operation for each corporation.
RULE: The carryback order is: 3 years, 2 years, 1 year, then forward up to 5 years for any remaining capital loss.
Corporation A
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016-CARRY FORWARD | |
| $0 | $1190 | $0 | $7,650 | $3,750 | $0 | $0 |
Explanation :2012 LOSSES SET OFF =$7090 -($11,850-$5,950)
2015 LOSS =($1,160)-$8,810
Corporation B
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016-CARRY FORWARD | |
| $5,350 | $0 | $0 | $0 | $0 | $0 | $9,450 |
Explanation:2014 set off =$2,750-($271,40-$3,820-$3,370-$7,750) rest is carreid forward
Corporation C
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016-CARRY FORWARD | |
| $4,550 | $0 | $0 | $0 | $0 | $0 | $3,470 |
Explanation:2012 Set off =$7870-$3,320
2014 set off =$11,350-($26,770-$9,850-$2,100) rest is carried forward
Corporation D
| 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016-CARRY FORWARD | |
| $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Explanation:For corporation D there is no 2016 carryforward because the 5 year carryforward period expires at the end of 2015.thus there is a $24,900 capital loss that will expire without being used
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