Form 1040, Schedule D During 2014, the Wardens sold the following capital assets

Question

Form 1040, Schedule D During 2014, the Wardens sold the following capital assets: (1) On February 2, 100 shares of Ahab Inc. were sold for $1,000. They had been purchased on November 12, 2013 for $2,500. (2) On November 5, 200 shares of Pequod Inc. were sold for $5,000. They had been purchased on January 5, 2014 for $2,000. (3) On December 4, 100 shares of Squall Inc. were sold for $10,000. They had been purchased on January 4, 2004 for $4,000. (4) On December 10, 200 shares of Kismet Inc. were sold for $5,000. They had been purchased on September 5, 2008 for $2,000. (5) On December 15, a number of gold coins were sold for $2,000. The coins had been purchased on October 15, 2007 for $3,000. Thee Wardens received a Form 1099-B from their broker for 2014 that showed the proceeds and basis for Items 1-4. The gold coins were sold to an acquaintance who did not provide a form 1099-B

Explanation / Answer

Form 8949

PART 1

Short Gain and loss

Particulars             Date                Sales                          Cost          Gain / Loss

Ahab Inc of 100 shares::Feb 2,2014      = $1,000. ::: Nov 12, 2013= $2,500.            ($1,500)Loss

Pequod Inc of 200 shares:: Nov 5, 200 = $5,000 :::Jan 5, 2014 =    $2,000.            3,000Gain

2) Total of the above =$3,000 - $1,500=$1,500 Gain

Capital Gain and loss

Particulars           Date                    Sales                        Cost          Gain / Loss

Squall Inc 100 shares= Dec 4, 2014   =   $10,000::: Jan 4, 2004 =$4,000:::    $6,000 Gain

Kismet Inc 200 shares=Dec 10, 2014 = $5,000 ::: Sep 5, 2008= $2,000:::        $3,000Gain

Gold coins  Dec 15, 2014=                  =$2,000 ::: Oct 15,2007=$3,000::: $1,000(loss)

2) Totals = $6,000 + $3,000 - $1,000=$8,000

Form 1040

Schedule D

Capital Gain and loss

Part 1

Short term Gain and loss

Particulars   Date                             Sales                          Cost          Gain / Loss

Ahab Inc of 100 sharesFeb 2,2014      = $1,000. ::: Nov 12, 2013= $2,500.            ($1,500)Loss

Pequod Inc of 200 shares Nov 5, 200 = $5,000 :::Jan 5, 2014 =    $2,000.            3,000Gain

Net short term capital gain or loss = $3,000 - $1,500=$1,500 Gain

Part B

Long term Capital gains/ Loss

Particulars           Date                    Sales                        Cost          Gain / Loss

Squall Inc 100 shares= Dec 4, 2014   =   $10,000::: Jan 4, 2004 =$4,000:::    $6,000 Gain

Kismet Inc 200 shares=Dec 10, 2014 = $5,000 ::: Sep 5, 2008= $2,000:::        $3,000Gain

Gold coins  Dec 15, 2014=                  =$2,000 ::: Oct 15,2007=$3,000::: $1,000(loss)

15)Net Capital Gain =$6,000 + $3,000 -$1,000=$8,000

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