Question

Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2019: (Loss amounts should be indicated by a minus sign.)

Description	Date Purchased	Basis		Date Sold	Amount Realized
Stock A	1/23/1995	$	7,250	7/22/2019	$	4,500
Stock B	4/10/2019		14,000	9/13/2019		17,500
Stock C	8/23/2017		10,750	10/12/2019		15,300
Stock D	5/19/2009		5,230	10/12/2019		12,400
Stock E	8/20/2019		7,300	11/14/2019		3,500

What is Grayson’s net short-term capital gain or loss from these transactions?

What is Grayson’s net long-term gain or loss from these transactions?

What is Grayson’s overall net gain or loss from these transactions?

What amount of the gain, if any, is subject to the preferential rate for certain capital gains?

Answer 1

ANSWER
STOCK	PURCHASE	SALES	PROFIT/LOSS	CAPITAL GAIN
	DATE	AMOUNT($)	DATE	AMOUNT($)
A	1-23-1995	7250	7-22-2019	4500	-2750	LONG TERM
B	4--10-2019	14000	9--13-2019	17500	3500	SHORT TERM
C	8-23-2017	10750	10-12-2019	15300	4550	LONG TERM
D	5-19-2009	5230	10-12-2019	12400	7170	LONG TERM
E	8-20--2019	7300	11-14-2019	3500	-3800	SHORT TERM
ANSWER 1
NET SHORT TERM CAPITAL GAIN OR LOSS = 300 (LOSS)
ANSWER 2
NET LONG TERM CAPITAL GAIN OR LOSS = 8970 (PROFIT)
ANSWER 3
OVERALL NET OR GAIN = 8670 (LONG TERM)
ANSWER 4
AMOUNT OF SUBJECT TO THE PREFERENTIAL RATE FOR CERTAIN CAPITAL GAINS = 8670