Homework SourseThe answers for Net short term capital gain and Net Long ter
The answers for Net short term capital gain and Net Long term capital loss are not correct. Please help me.
During 2015, George receives a $60,000 salary and has no deductions for AGI. In 2014, George had a $5,500
STCL available and no other capital losses or capital gains. Consider the following sales.
An automobile purchased in 2010 for $11,200 and held for personal use is sold for $9,000.
On April 10, 2015, stock held for investment is sold for $30,000. The stock was acquired on November 20, 2014, for $16,000
Requirement
Determine George\'s AGI for 2015. (Assume that the 2014 STCL of $5,500 is before George has taken any capital loss deduction in 2014. Complete all answer boxes. Enter a \"0\" for any zero-balances.)
2015
Salary ?
Net short-term capital gain (loss) ?
Net long-term capital gain (loss) ?
Total AGI ?
Hope this helps
| Salary | $ 60,000 | |
| STCL available | $ (5,500) | |
| Purchase price of stock | $ 16,000 | |
| Selling price of stock | $ 30,000 | |
| Gain on sale of stock | $ 14,000 | |
| Net short term capital gain = 14000 - 5500 | $ 8,500 | |
| LTCL | ||
| Automobile Purchase price | $ 11,200 | |
| Selling price | $ 9,000 | |
| Net Long term capital loss | $ (2,200) | |
| Total AGI | $ 66,300 |
Solution
Particulars Amount
Salary $ 60,000
Sold $30,000
Less:
Purchase $16,000
___________
Gain $14,000
Less:
STCL available $2,500
___________
Net short gain $11,500
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Total AGI $71,500
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Note:
Long term capital loss sold out for personal use not to calculated in AGI.
STCL available :
2014 before Calculating any deduction is $5,500 but maximum limit to carry forward is $3,000
so 2014 George deduct $3,000.
$5,500 - $3,000. = $2,500
2015 = $2,500(STCL available )
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