For each of the following cases, determine the amount of capital gain or loss to

Question

For each of the following cases, determine the amount of capital gain or loss to report in each year (after taking into account any applicable carrybacks) and the capital loss carryforward to 2016.

Assume that 2010 is the first year of operation for each corporation.

Capital gain or loss for year indicated Corporation 2010 2011 2012 2013 2014 2015 A $ 5,950 $ 7,090 $ (11,850 ) $ 8,810 $ 3,750 $ (1,160 ) B 5,350 3,820 3,370 7,750 (27,140 ) 2,750 C 7,870 9,850 (3,320 ) 2,100 (26,770 ) 11,350 D (64,710 ) 8,650 3,790 11,450 13,700 2,220

Explanation / Answer

RULE: The carryback order is: 3 years, 2 years, 1 year, then forward up to 5 years for any remaining capital loss.

Corporation A

Explanation :2012 LOSSES SET OFF =$7090 -($11,850-$5,950)

2015 LOSS =($1,160)-$8,810

Corporation B

Explanation:2014 set off =$2,750-($271,40-$3,820-$3,370-$7,750) rest is carreid forward

Corporation C

Explanation:2012 Set off =$7870-$3,320

2014 set off =$11,350-($26,770-$9,850-$2,100) rest is carried forward

Corporation D

Explanation:For corporation D there is no 2016 carryforward because the 5 year carryforward period expires at the end of 2015.thus there is a $24,900 capital loss that will expire without being used

2010 2011 2012 2013 2014 2015 2016-CARRY FORWARD $0 $1190 $0 $7,650 $3,750 $0 $0

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