AC553_W7_Solution12_38

AC553_W7_Solution12_38 - 6,000 How should Bert treat the...

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1 Problem 12-38 Solution Taxable Income: Capital Loss Carryovers Bert Baker had $50,000 salary during 2007 and had the following capital gains and losses: STCL carryover from 2006 . ....... ($4,000) STCL . .......................................... (2,000) STCG . .......................................... 1,000 LTCL carryover from 2006 . ........ (5,000) LTCL . .......................................... (3,000) LTCG . ..........................................
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Unformatted text preview: 6,000 How should Bert treat the above on his 2007 tax return? Solution: Bert has a $3,000 deduction resulting in $47,000 adjusted gross income in 2007 and has a capital loss carryover of $4,000 to 2008. Bert's net short-term capital loss is $5,000 and his net long-term capital loss is $2,000. Of the $7,000 loss, $3,000 is deductible in 2007 and $4,000 is carried over to 2008, $2,000 as a STCL carryover and $2,000 as a LTCL carryover....
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This note was uploaded on 02/21/2012 for the course ACCOUNTING 553 taught by Professor James during the Spring '12 term at DeVry Phoenix.

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