Exam 10: Property Transactions: Capital Gains and Losses

Donald has retired from his job as a corporate manager. He buys and sells stocks on a daily basis. He spends 8-9 hours daily studying prospective stock purchases and market news. What tax issues should Donald consider?

Rick sells stock of Ty Corporation,which has an adjusted basis of $20,000,for $22,000.He pays a sales commission of $500.In computing his gain or loss,the amount realized by Rick is $1,500.

Coretta sold the following securities during 2014: What is Coretta's net capital gain or loss result for the year?

If property received as a gift has a basis of the fair market value of the property on the date of the gift,the donee's holding period starts on the day after the date of the gift.

Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000,a STCL of $12,000,a LTCG of $1,800 and a LTCL of $1,000.As a result of these transactions,Joel will

In the current year,ABC Corporation had the following items of income,expense,gains,and losses: What is taxable income for the year?

Sari is single and has taxable income of $33,000 without considering the sale of a capital asset in November of 2014 for $15,000.That asset was purchased six years earlier and has a tax basis of $5,000.The tax liability applicable to only the capital gain is

On January 1 of this year,Brad purchased 100 shares of stock at $4,000.By December 31 of this year,the stock had declined in value to $2,200,but Brad still held the shares.Brad has recognized a $1,800 loss for tax purposes this year.

All of the following are capital assets with the exception of

Adjusted net capital gain is taxed at 15% for taxpayers with marginal tax rates of 15% or higher,but less than 39.6%.

Dennis purchased a machine for use in his business.Mr.Dennis' costs in connection with this purchase were as follows: What is the amount of Mr.Dennis' basis in the machine?

Bad debt losses from nonbusiness debts are deductible as short-term or long-term capital losses depending on how long the debt was outstanding.

Which one of the following is a capital asset?

Gain on sale of a patent by an inventor generally is ordinary income.

In a common law state,jointly owned property left to the surviving spouse will have a basis after the estate is settled equal to

Olivia,a single taxpayer,has AGI of $280,000 which includes $220,000 of salary and $60,000 of investment income. She will pay Medicare tax on the $60,000 of investment income of

Generally,gains resulting from the sale of collectibles such as antiques,stamps,or artwork are taxed at a maximum rate of 25%.

Mike sold the following shares of stock in 2014: What are the tax consequences of these transactions,assuming his marginal tax rate is (a)33% and (b)39.6%? Ignore the medicare tax on net investment income.

Niral is single and provides you with the following tax information for 2014: Compute her tax liability.[Show all calculations in good form.]

Kendrick,who has a 35% marginal tax rate,had the following results from transactions during the year: After offsetting the STCL,what is (are)the resulting gain(s)?