e Tom Thompson sells shares of Section 1244 stock for 50000 He purchased the

E tom thompson sells shares of section 1244 stock for

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e. Tom Thompson sells shares of Section 1244 stock for $50,000. He purchased the stock years ago for 98. $175,000. How is the loss treated on Tom’s tax return if he files a joint tax return with his spouse?$125,000 ordinary loss. a. $100,000 ordinary loss; $25,000 long-term capital loss.b. $25,000 ordinary loss; $100,000 long-term capital loss.c. $125,000 short-term capital loss.d. $125,000 long-term capital loss. e. During 2010, Hattie Hanover recognizes a $11,000 short-term capital loss, a $5,000 long-term capital loss 99. and a $6,000 short-term capital gain. Prior to considering these capital gains and losses, Hattie’s adjusted gross income equals $50,000. After taking its capital gains and losses into consideration, her income equals: e. During 2010, Greta Gibson recognizes a $2,000 short-term capital gain, a $6,000 short-term capital loss, a 100. $20,000 long-term capital gain, and a $7,000 long-term capital loss. Greta’s net capital gain is: d. Mike Mitchell had the following capital transaction during the current tax year:101. Short-termLong-termGains$6,000$23,000Losses($9,000)($10,000)What portion of Mike’s capital gains is included in his adjusted gross income?
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595 Testbank ©2010 CCH. All Rights Reserved. Chapter 12 In 2010, Greg Goodrich had taxable income of $100,000. This amount included short-term capital losses of 102. $1,000 and long-term capital losses of $12,000. Greg had no other capital transactions in prior years. What is Greg’s capital loss carryover to 2011? e. On November 14, 2008, Patricia Primrose purchased a rare gem stone as an investment. On March 5, 2010, 103. she exchanged it for another rare gem in a nontaxable exchange. On June 9, 2010, she sold the latter stone for cash and realized a gain. This gain will be treated as a short-term capital gain. e. A calendar-year taxpayer had net Code Sec. 1231 losses of $8,000 in 2008. He had net Code Sec. 1231 105. gains of $5,250 and $4,600 in 2009 and 2010, respectively. There were no net Code Sec. 1231 losses in 2005, 2006, and 2007. What portion of the net Code Sec. 1231 gain is reported as ordinary income, and what portion is considered long-term capital gain in 2010?$5,250 is reported as ordinary income; no portion is treated as long-term gain.
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