What is graysons net short-term capital gain

Assignment Help Taxation

Reference no: EM133412648

Question 1. John bought 1,700 shares of Intel stock on October 18, 2018, for $44 per share plus a $750 commission he paid to his broker. On December 12, 2022, he sells the shares for $63.50 per share. He also incurs a $1,000 fee for this transaction.

- What is the gain/loss for John on the sale of his Intel stock?

-What is the character of the gain/loss?

Question 2. Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $67,400. Meg works part time at the same university. She earns $35,800 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.)

Note: Round your final answers to the nearest whole dollar amount.

a. What is the Comers' tax liability for 2022 if they report the following capital gains and losses for the year?

Short-term capital gains $ 11,800
Short-term capital losses (3,400)
Long-term capital gains 17,800
Long-term capital losses (7,400)

b. What is the Comers' tax liability for 2022 if they report the following capital gains and losses for the year?

Short-term capital gains $ 1,500
Short-term capital losses 0
Long-term capital gains 14,400
Long-term capital losses (11,400)

Question 3. Grayson (single) is in the 24 percent tax rate bracket and has sold the following stocks in 2022:

Note: Loss amounts should be indicated by a minus sign.

Stock

Date Purchased

Basis

Date Sold

Amount Realized

Stock A 1/23/1998 $ 8,050 7/22/2022 $ 5,140
Stock B 4/10/2022 15,600 9/13/2022 19,450
Stock C 8/23/2020 12,750 10/12/2022 18,020
Stock D 5/19/2012 5,870 10/12/2022 13,600
Stock E 8/20/2022 7,860 11/14/2022 3,900

a. What is Grayson's net short-term capital gain or loss from these transactions?

b. What is Grayson's net long-term gain or loss from these transactions?

c. What is Grayson's overall net gain or loss from these transactions?

d. What amount of the gain, if any, is subject to the preferential rate for certain capital gains?

Reference no: EM133412648

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