. She has an STCL carryover of $250 from last year 5-67 Spencer Duck (SSN 000-22
ID: 2333315 • Letter: #
Question
. She has an STCL carryover of $250 from last year 5-67 Spencer Duck (SSN 000-22-1111) is single and his eight-year-old son, Mitch, lives wih him nine months of the year in a rented condominium at 321 Hickory Drive in Ames lowa. Mitch lives with his mother, Spencer's ex-wife, during the summer months. h mother provides claim Mitch as her $4,000. Taxes withheld during the year amount to $3,221. On July 14 of the current year he sold the following assets: more than half of Mitch's support and Spencer has agreed to allow her to has a salary of $39,000 and itemized deductions of ent. S . Spencer received a K I from a partnership indicating that his share of the partnership STCL is $200.Explanation / Answer
Computation of Income (as per Income Tax Act, 1961)
income From Salary 39000 Less: Deduction (4000) 35000
Inocme from Capital Gain/Loss
1. STCL (as Given) (200)
2. Land Sale 35000 Less : Purchase Cost (23994) (18600*129/100) LTCG on sale of land 11006
3. Sale of Computer 2480 Less:- Cost (1440) ( 4000-40%-40%) LTCG 1040
4.Sale of card 8500 Less:- Cost (6000) LTCG on card 2500
5. Sale of Security 20000 Less:- cost (10700) STCG 9300
Total STCG = 9300-200= 9100 Total LTCG =2500+1040+11006= 14546
Total Income 58646
Notes: 1. In case of Land Sold:- Index No. of Capital Gain 2001-02 =100, 2007-08= 129, According to The Income Tax Act, in case of gift of Land from relative or any other person, the cost and the period of holding for the purpose of capital gain calculation, the previsous owner cost and period of holding shall be taken.
2. On computer there is 40% chargeable, therefore first deduct the dep. from the cost computer and calculate WDV and then deduct from sale consideration for the calculation of capital gain.
3. In case of securities:- As per Income Tax Act, any property received by inheritance the cost and period of holding of property shall be taken from the the costand period of holding of previous owner for the calculation of capital gain, i.e. 10700.
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