Capital assets and taxes

Assignment Help Accounting Basics
Reference no: EM1359317

Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000, a STCL of $12,000, a LTCG of $1,800 and a LTCL of $1,000. As a result of these transactions, Joel will:

A. deduct net losses of $6,200 against ordinary income.
B. deduct losses of $3,000 against ordinary income and carry $3,200 of STCL forward.
C. deduct losses of $3,000 against ordinary income and carry $3.200 of LTCL forward.
D. deduct losses of $3,000 against ordinary income and carry $3,200 of losses back two years.

Short Term Capital Loss = -7000
Long Term Capital Gain = 800

B - If total STCL exceed total STCG for the tax year, the excess is defined as a net short-term capital loss. If NSTCL exceeds NLTCG, the capital loss may be offset, on a dollar-for-dollar basis, against a non-corp taxpayer's ordinary income for amounts up to 3000 in any 1 year.

Reference no: EM1359317

Questions Cloud

Taxation of scholarships : Hope receives an $18,500 scholarship from State University. The university specifies that $8,500 is for tuition, books, supplies, and equipment, while $10,000 is for room and board. In addition, Hope works part-time at the campus library and earns..
Find the amount for dividends payment : Wheeler Company had retained earnings as of 12/31/08 of $12 million. During 2009, Wheeler's net income was $4 million. Retained earnings balance at the end of 2009 was equal to 13 million dollar.
What is the change in entropy for the system : What is the change in entropy for the system. How much force must be applied to climb the hill at the same speed and same air resistance.
Determine the tension t in the string : Determine the tension T in the string.
Capital assets and taxes : Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000, a STCL of $12,000, a LTCG of $1,800 and a LTCL of $1,000. As a result of these transactions, Joel will:
What is the maximum reaction time : A train is traveling up a 3.3 incline at a speed of 3 when the last car breaks free and begins to coast without friction. How long does it take for the last car to come to rest momentarily? How far did the last car travel before momentarily coming..
Etiology of inhalant abuse : Can you describe a commonly abused inhalant, the etiology of inhalant abuse, and a current treatment approach that has shown effectiveness.
How many registers available for use by input parameters : Each register window has 32 registers, of which 10 are global variables and 10 are local variables. How many registers would be available for use by input parameters?
Calculate the amount for investment : A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount every year into an investment account that earns 8 percent interest per year, beginning on the day your child i..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd