Exam 7: Capital Gains and Other Sales of Property Schedule D and Form 4797

Mikeala has taxable income of $73,240,without consideration of capital gain or loss transactions.Mikeala has a short-term capital gain of $11,000,a short-term capital gain of 3,000,and a long-term capital loss of $4,000. a.What is the net capital gain(loss)included in taxable income? b.Is it short-term or long-term in nature? c.What is the amount and nature of any carryover? d.Assuming none of the gains or losses is from collectibles or unrecaptured Section 1250 property,at what tax rate will the gains or losses be taxed to Mikeala? (Mikeala is in the 33% tax bracket for ordinary income. )

Currently,the top tax rates for an individual with long-term capital gains on the sale of stock and on the sales of collectibles are:

The gain or loss on land sold within one year of purchase is recorded on which one of the following forms or schedules?

Juanita is a sole proprietor who has some outstanding receivables she wishes to sell.The receivables have a $16,000 FMV and a basis of $10,000.Juanita sells the receivables for $12,500.What gain or loss does Juanita recognize on the sale?

Jake purchased a $300,000 earthmover for his business.He sold the earthmover for $245,000 after taking $210,000 of depreciation.What is the nature and amount of the gain or loss on the sale?

A capital asset includes all of the following except:

All gains and losses on the sale of property that was held for more than one year is subject to preferential tax rates.

Geraldine inherited a piece of land when her father Albert died on July 26,2016 The FMV of the land at the date of death was $40,000 and cost Albert $20,000 in 2010.Geraldine sold the land on March 29,2017 for $45,000.What are the amount and nature of the gain on the sale?

Diane gifted 100 shares of Runners Link common stock with a FMV of $8,000 to her brother,Sean.The stock originally cost Diane $11,000.Sean later sells the stock on the open market for $9,000.Sean recognizes:

Marquez purchased some equipment for $58,750 on August 15,2016.He decided he did not need the equipment so he sold it on June 13,2017 for $56,500.The equipment was subject to depreciation of $6,964 for 2016 and 2017.What gain or loss will Marquez recognize on the sale of the equipment?

Anupay sold 900 shares of Stay-Rich Mutual fund for $85,600 in 2017.She purchased shares in the mutual fund in the following years. 2011 200 shares@ \ 105 2013 300 shares@ \ 100 2014 200 shares@ \ 110 2016 300 shares@ \ 88 2016 100 shares@ \ 95 (all 2016 shares are considered to be held for > 1 year) a.Determine the amount of the gain or loss assuming Anupay uses the single category average cost method. b.Assuming there are no other Schedule D transactions,how much of a gain or loss will Anupay recognize on her Form 1040 for 2017? c.How much,if any of the gain or loss will be carried over to 2018?

In 2017,Linda gave her son,Jonathan 425 shares of School Products Inc. ,common stock.Linda paid $9,350 for the stock in 2011.At the date of the gift,the FMV of the stock was $6,800.Assuming that there is no gift tax paid,if Jonathan sells the stock for $6,000,he will recognize:

Sylvio purchased an apartment building as an investment in January 2011 for $383,500 and sold it for $475,000 in 2017.He reported $68,436 of allowed accumulated straight-line depreciation.If Sylvio is in the highest tax bracket for ordinary income,how much of his gain qualifies for preferential tax treatment?

Caesar,a single taxpayer,has wage income of $75,000.He also has a short-term capital loss of $5,000,a short-term capital gain of $2,000,and a long-term capital gain of $3,000.What is Caesar's AGI for 2017?

Patrice sells a parcel of land for $50,000 cash and the buyer assumes Patrice's liability of $7,000 on the land.Patrice's basis in the land is $40,000.What is the gain or loss she will recognize on the sale?

Ordinary gains or losses produced outside the normal course of business relate to the sale of business property held less than one year and do not include the sale of accounts receivable.

Amal gave his sister,Dora 100 shares of stock on April 3,2016.Amal originally paid $3,100 for the stock on January 5,2016.At the date of the gift,the fair market value of the stock was $2,800.If no gift tax is paid and Dora sells the stock for $2,700 on August 31,2017,she will recognize:

If a taxpayer cannot specifically identify which shares of stock were sold,the average cost of all shares held is used as the adjusted basis of the shares that were sold.

Otis,the taxpayer,has the following capital gains and losses for the year: Short-term capital loss \1 ,500 Short-term capital gain \1 ,000 Long-term capital loss \2 ,000 Long-term capital gain \3 ,860 a.What is his net short-term gain (loss)? b.What is his net long-term gain (loss)? c.What amount of the gain (loss)is entered on his 1040, (line 13)Capital gain or (loss)from Schedule D?

Which one of the following is a capital asset?