During 2020, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 If an amount is zero, enter "0". a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return. How much is Gorilla's net capital loss for 2020? $ What is the amount of the capital loss deduction on Gorilla's 2020 tax return? $ Any excess net capital loss is carried back or forward as a short-term capital loss . b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Carried back to 2017 $ Carried back to 2018 $ Carried back to 2019 $ Total carrybacks $ c. Compute the total amount of capital loss carryforward to 2021 and future years. $ Indicate the years to which the loss may be carried forward. Select "Yes" or "No", which ever is appropriate. 2021 Yes 2022 Yes 2023 Yes 2024 Yes 2025 Yes 2026 No
During 2020, Gorilla Corporation, a calendar year C corporation, has net short-term
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If an amount is zero, enter "0".
a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return.
How much is Gorilla's net capital loss for 2020?
$
What is the amount of the capital loss deduction on Gorilla's 2020 tax return?
$
Any excess net capital loss is carried back or forward as a short-term capital loss .
b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years.
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c. Compute the total amount of capital loss carryforward to 2021 and future years.
$
Indicate the years to which the loss may be carried forward. Select "Yes" or "No", which ever is appropriate.
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d. If Gorilla is a sole proprietorship, rather than a corporation, how would the owner report these transactions on her 2020 tax return?
Gorilla offsets $ of capital gains against her capital losses and deducts an additional $in capital losses . The remaining $ is carried forward indefinitely .
e. Assume that Gorilla Corporation's capital loss carryforward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of the carryover to offset capital gains in 2021 and the remaining $16,000 to offset capital gains in 2022. Determine the tax savings of the $105,000 long-term capital loss recognized in 2020.
Assume a discount rate of 5%. The present value factors at 5% are as follows: 1.000 for 2017-2020; 0.9524 for 2021 and 0.9070 for 2022. Gorilla Corporation's marginal income tax rate is 34% for all tax years prior to 2018.
Round your computations to the nearest dollar.In present value terms, the tax savings of the $105,000 long-term capital loss recognized in 2020 is $.
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