An unmarried taxpayer sells the following capital assets during the year. Proper
ID: 2501876 • Letter: A
Question
An unmarried taxpayer sells the following capital assets during the year.
Property
Date acquired
Date sold
Sales price
Adjusted basis
1
6/4/13
4/6/14
10,000
14,000
2
1/8/12
12/15/14
15,000
17,000
The taxpayer carries over to the next tax year:
a $4,000 short-term capital loss.
a $1,000 short-term capital loss and a $2,000 long-term capital loss.
a $3,000 short-term capital loss.
a $2,000 short-term capital loss and a $1,000 long-term capital loss.
a $3,000 long-term capital loss.
Property
Date acquired
Date sold
Sales price
Adjusted basis
1
6/4/13
4/6/14
10,000
14,000
2
1/8/12
12/15/14
15,000
17,000
Explanation / Answer
a $1,000 short-term capital loss and a $2,000 long-term capital loss.
If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or ($1,500 if you are married filing separately.)
A tax payer shall first use it against short term Capital loss and balance if any to long term loss
short term Long term Sale value 10000 15000 Adjusted basis 14000 17000 capital Loss -4000 -2000 Adjusted against ordinary income Maximum up to $3000 3000 0 Carried forward -1000 -2000Related Questions
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