Mr. Green had the following capital transactions in 2015: Date Acquired Cost Dat
ID: 2427396 • Letter: M
Question
Mr. Green had the following capital transactions in 2015:
Date Acquired
Cost
Date Sold
Selling Price
01/13/14
$ 4,500
01/10/15
$ 8,000
05/10/12
$ 3,000
02/25/15
$ 4,000
08/09/14
$ 38,000
07/06/15
$ 45,000
01/17/15
$ 6,000
11/16/15
$ 2,000
07/10/12
$ 1,500
12/20/15
$ 5,500
Required:
What is Mr. Green’s net long term capital gain or loss?
What is Mr. Green’s net short term gain or loss?
What is his net capital gain or loss? How will it affect his taxable income?
Date Acquired
Cost
Date Sold
Selling Price
01/13/14
$ 4,500
01/10/15
$ 8,000
05/10/12
$ 3,000
02/25/15
$ 4,000
08/09/14
$ 38,000
07/06/15
$ 45,000
01/17/15
$ 6,000
11/16/15
$ 2,000
07/10/12
$ 1,500
12/20/15
$ 5,500
Explanation / Answer
long term capital gain or loss is considered ,when an assets is sold ,which is owned for more than 1 year (12 months)
long term capital gain or loss :
cost sold long term capital Gain (loss)
4500 8000 3500
3000 4000 1000
1500 5500 4000
8500
Note:- 1. gain on sale of assets costing of $6000 purchased at 01/017/15 , is not considered at long term capital gain, because its time period is less than 12 months
2. gain on sale of assets costing of $38000 purchased at 08/09/14 , is not considered at long term capital gain, because its time period is less than 12 months
Mr. Green’s net short term gain or loss :
. cost sale short term gain (loss)
38000 45000 7000
6000 2000 (4000)
Net gain 3000
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