During 2023, Chaps McGee, S.S.# 252-86-1837, completed the following stock transactions: Stock Date Date Sales Acquired Sold Price Cost 200 shs Walmart 07/10/10 04/28/23 $15.325 $2,625 100 shs Blue Sky 10/02/22 09/17/23 $3.040 $8,200 600 shs Lowes 06/04/23 12/21/23 $10,950 $9,870 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2023 tax return: 1. A short-term capital loss carryforward from 2022 of $4,600 2. On June 19, 2017 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $390,000, plus closing costs of $5,100. On September 30, 2023, he sold this acre for $560,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $5,200. 4. Mr. McGee received a capital gain distribution of $350 during 2023 from the Vanguard Wellington Mutual Fund. Requirements: 1. Complete Mr. McGee's 2023 Schedule D (assume cost basis was reported to the IRS) and Form 8949. The forms must be hand written using a pencil. 2. How will Mr. McGee's gain or loss affect his 2023 tax calculation? If it is a loss, how much of the loss is deductible? If it is a gain, how will the gain be taxed? Give a detailed answer.
During 2023, Chaps McGee, S.S.# 252-86-1837, completed the following stock transactions: Stock Date Date Sales Acquired Sold Price Cost 200 shs Walmart 07/10/10 04/28/23 $15.325 $2,625 100 shs Blue Sky 10/02/22 09/17/23 $3.040 $8,200 600 shs Lowes 06/04/23 12/21/23 $10,950 $9,870 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2023 tax return: 1. A short-term capital loss carryforward from 2022 of $4,600 2. On June 19, 2017 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $390,000, plus closing costs of $5,100. On September 30, 2023, he sold this acre for $560,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $5,200. 4. Mr. McGee received a capital gain distribution of $350 during 2023 from the Vanguard Wellington Mutual Fund. Requirements: 1. Complete Mr. McGee's 2023 Schedule D (assume cost basis was reported to the IRS) and Form 8949. The forms must be hand written using a pencil. 2. How will Mr. McGee's gain or loss affect his 2023 tax calculation? If it is a loss, how much of the loss is deductible? If it is a gain, how will the gain be taxed? Give a detailed answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:During 2023, Chaps McGee, S.S.# 252-86-1837, completed the following stock transactions:
Stock
Date
Date
Sales
Acquired
Sold
Price
Cost
200 shs Walmart
07/10/10
04/28/23
$15.325
$2,625
100 shs Blue Sky
10/02/22
09/17/23
$3.040
$8,200
600 shs Lowes
06/04/23
12/21/23
$10,950
$9,870
In addition to the above transactions, Mr. McGee also had the following items related to the preparation of
his 2023 tax return:
1. A short-term capital loss carryforward from 2022 of $4,600
2. On June 19, 2017 Mr. McGee purchased one acre of land as an investment, located in Gwinnett
County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid
$390,000, plus closing costs of $5,100. On September 30, 2023, he sold this acre for $560,000,
less a 10% real estate commission.
3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's
long-term capital loss is $5,200.
4. Mr. McGee received a capital gain distribution of $350 during 2023 from the Vanguard Wellington
Mutual Fund.
Requirements:
1. Complete Mr. McGee's 2023 Schedule D (assume cost basis was reported to the IRS) and Form
8949. The forms must be hand written using a pencil.
2. How will Mr. McGee's gain or loss affect his 2023 tax calculation? If it is a loss, how much of the
loss is deductible? If it is a gain, how will the gain be taxed? Give a detailed answer.
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