eBookSCSCHEDULE D(Form 1040)Department of the TreasuryInternal Revenue Service (99)Name(s) shown on returnKaren UpchurchPart ITEAM NATURAL LO...dst5555555555555...JOCapital Gains and Losses► Attach to Form 1040, 1040-SR, or 1040-NR.►Go to www.irs.gov/Scheduled for instructions and the latest information.► Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.See instructions for how to figure the amounts to enter on the linesbelow.Did you dispose of any investment(s) in a qualified opportunity fund during the tax year?If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.Short-Term Capital Gains and Losses-Generally Assets Held One Year or Less (see instructions)This form may be easier to complete if you round off cents to wholedollars.Check My Work 3 more Check My Work uses remaining.1a Totals for all short-term transactions reported on Form 1099-Bfor which basis was reported to the IRS and for which you haveno adjustments (see instructions). However, if you choose toreport all these transactions on Form 8949, leave this line blankand go to line 1b . . .1b Totals for all transactions reported on Form(s) 8949 with Box Aprogress=false(d)Proceeds (salesprice)(e)Cost (or otherbasis)YourEmail Instructorsocial security number123-45-6789OMB No. 1545-0074(g)Adjustments togain or loss fromForm(s) 8949,Part I, line 2,column (g)2021AttachmentSequence No. 12□ Yes NoSave and Exit(h) Gain or(loss)Subtract column(e) from column(d) and combinethe result withcolumn (g)Previous1★ ☐ JNextSubmit Assignment for GradingShow allXX▶ QuestionMapsSTEAM NATURAL LO... Udst5555555555555...ДарSam, a single taxpayer, acquired stock in a corporation that qualified as a small business corporationunder § 1244, at a cost of $100,000, three years ago. He sells the stock for $10,000 in the current taxyear.Sam would have a capital loss of $and an ordinary of loss of $____ for tax purposes.b. Assume instead that Sam sold the stock to his sister, Kara, a few months after it was acquired for$100,000 (its fair market value).If Kara sells the stock for $60,000 in the current year, she should treat the loss as a capital loss offor tax purposes.$Expert Answer100% (20 ratings)This solution was written by a subject matter expert. It's designed to help students like you learn core concepts.

Sam, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under § 1244, at a cost of $100,000, three years ago. He sells the stock for $10,000 in the current tax year. Sam would have a capital loss of $_. and an ordinary of loss of $_____ for tax purposes. b. Assume instead that Sam sold the stock to his sister, Kara, a few months after it was acquired for $100,000 (its fair market value). If Kara sells the stock for $60,000 in the current year, she should treat the loss as a capital loss of for tax purposes. $

Sam, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under § 1244, at a cost of $100,000, three years ago. He sells the stock for $10,000 in the current tax year. Sam would have a capital loss of $_. and an ordinary of loss of $_____ for tax purposes. b. Assume instead that Sam sold the stock to his sister, Kara, a few months after it was acquired for $100,000 (its fair market value). If Kara sells the stock for $60,000 in the current year, she should treat the loss as a capital loss of for tax purposes. $

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 41P

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LO.3 Garnet incurs the following capital asset transactions during the year. Further, Garnet has an excess capital loss carryforward of 6,000 from last year. a. What are the tax consequences of these transactions if the 6,000 loss is long term and Garnet is an individual? Garnet is a C corporation? b. What are the tax consequences of these transactions if the 6,000 loss is short term and Garnet is an individual? Garnet is a C corporation?
Determine the taxpayers gross income for tax purposes in each of the following situations: a. Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of 300 for corporate stock with a fair market value of 12,000 at the time of the exchange. Debs cost of the bond was 10,000. The value of the stock had decreased to 11,000 by the end of the year. b. Deb needed 10,000 to make a down payment on her house. She instructed her broker to sell some stock to raise the 10,000. Debs cost of the stock was 3,000. Based on her brokers advice, instead of selling the stock, she borrowed the 10,000 using the stock as collateral for the debt. c. Debs boss gave her two tickets to the Rabid Rabbits rock concert because she met her sales quota. At the time she received the tickets, each ticket had a face price of 200 and was selling on eBay for 300. On the date of the concert, the tickets were selling for 250 each. Deb and her son attended the concert.
Determine whether the taxpayer has income that is subject to taxation in each of the following situations: a. Capital Motor Company is going out of business. As a result, June is able to purchase a car for 12,000; its original sticker price was 25,000. b. Chuck is the sole owner of Ransom, Inc., a corporation. He purchases a machine from Ransom for 10,000. Ransom had paid 50,000 for the machine, which was worth 30,000 at the time of the sale to Chuck. c. Gerry is an elementary school teacher. She receives the Teacher of the Month Award for February. As part of the award, she gets to drive a new car supplied by a local dealer for a month. The rental value of the car is 400 per month. d. Payne has worked for Stewart Company for the last 25 years. On the 25th anniversary of his employment with Stewart, he receives a set of golf clubs worth 1,200 as a reward for his years of loyal service to the company. e. Anna enters a sweepstakes contest that was advertised on the back of a cereal box, and wins 30,000. The prize will be paid out in 30 annual installments of 1,000. She receives her first check this year. f. Terry buys an antique vase at an estate auction for 780. Upon returning home, she accidentally drops the vase and finds that a 100 bill had been taped inside it.
LO.3, 8, 9 The taxpayer has generated excess capital losses (both short-term and long-term) for the current year. Discuss the income tax ramifications of the losses if the taxpayer is: a. An individual. b. A C corporation. c. An S corporation. d. A partnership.