Skip to question [The following information applies to the questions displayed below.] During 2024, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price Broker's Commission Paid at Time of Purchase 300 shares of IBM common (NYSE: IBM) 11/22/2021 $ 10,350 $ 100 200 shares of IBM common (NYSE: IBM) 4/3/2022 43,250 300 3,000 shares of Apple preferred (NASDAQ: AAPL) 12/12/2022 147,000 1,300 2,100 shares of Cisco common (NASDAQ: CSCO) 8/14/2023 52,500 550 420 shares of Vanguard mutual fund 3/2/2024 14,700 No-load fund*Footnote asterisk *Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2024 and to reinvest in municipal bonds. The following investment assets were sold in 2024: Investment Assets Date Sold Sale Price Broker's Commission Paid at Time of Sale 300 shares of IBM common 5/6 $ 13,700 $ 100 3,000 shares of Apple preferred 10/5 221,400 2,000 2,100 shares of Cisco common 8/15 63,250 650 451 shares of Vanguard mutual fund 12/21 15,700 No-load fund*Footnote asterisk *Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2024: The Howells received a consolidated Form 1099 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This dividend was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2024. In 2018, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2024, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $2,300 short-term capital loss carryover and a $4,800 long-term capital loss carryover from prior years. The Howells did not instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. Assume the Howells have $130,000 of wage income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $82,300 rather than $2,300 as indicated above. If this is the case, how much short-term and long-term capital loss carryovers remain to be carried beyond 2024 to future tax years? how would I calculate the short term capital gain ik the long term = 0 but I cant figure out the short term

Skip to question [The following information applies to the questions displayed below.] During 2024, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price Broker's Commission Paid at Time of Purchase 300 shares of IBM common (NYSE: IBM) 11/22/2021 $ 10,350 $ 100 200 shares of IBM common (NYSE: IBM) 4/3/2022 43,250 300 3,000 shares of Apple preferred (NASDAQ: AAPL) 12/12/2022 147,000 1,300 2,100 shares of Cisco common (NASDAQ: CSCO) 8/14/2023 52,500 550 420 shares of Vanguard mutual fund 3/2/2024 14,700 No-load fundFootnote asterisk Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2024 and to reinvest in municipal bonds. The following investment assets were sold in 2024: Investment Assets Date Sold Sale Price Broker's Commission Paid at Time of Sale 300 shares of IBM common 5/6 $ 13,700 $ 100 3,000 shares of Apple preferred 10/5 221,400 2,000 2,100 shares of Cisco common 8/15 63,250 650 451 shares of Vanguard mutual fund 12/21 15,700 No-load fundFootnote asterisk Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they received. In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2024: The Howells received a consolidated Form 1099 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This dividend was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2024. In 2018, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2024, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $2,300 short-term capital loss carryover and a $4,800 long-term capital loss carryover from prior years. The Howells did not instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends. Assume the Howells have $130,000 of wage income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $82,300 rather than $2,300 as indicated above. If this is the case, how much short-term and long-term capital loss carryovers remain to be carried beyond 2024 to future tax years? how would I calculate the short term capital gain ik the long term = 0 but I cant figure out the short term

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 26P

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[The following information applies to the questions displayed below.]

During 2024, your clients, Mr. and Mrs. Howell, owned the following investment assets:

Investment Assets	Date Acquired	Purchase Price	Broker's Commission Paid at Time of Purchase
300 shares of IBM common (NYSE: IBM)	11/22/2021	$ 10,350	$ 100
200 shares of IBM common (NYSE: IBM)	4/3/2022	43,250	300
3,000 shares of Apple preferred (NASDAQ: AAPL)	12/12/2022	147,000	1,300
2,100 shares of Cisco common (NASDAQ: CSCO)	8/14/2023	52,500	550
420 shares of Vanguard mutual fund	3/2/2024	14,700	No-load fund*Footnote asterisk

*Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2024 and to reinvest in municipal bonds. The following investment assets were sold in 2024:

Investment Assets	Date Sold	Sale Price	Broker's Commission Paid at Time of Sale
300 shares of IBM common	5/6	$ 13,700	$ 100
3,000 shares of Apple preferred	10/5	221,400	2,000
2,100 shares of Cisco common	8/15	63,250	650
451 shares of Vanguard mutual fund	12/21	15,700	No-load fund*Footnote asterisk

*Footnote asteriskNo commissions are charged when no-load mutual funds are bought and sold.

The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099-B they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2024:

The Howells received a consolidated Form 1099 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This dividend was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2024.
In 2018, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2024, and Mrs. Howell has been notified she will not be receiving any repayment of the loan.
The Howells have a $2,300 short-term capital loss carryover and a $4,800 long-term capital loss carryover from prior years.
The Howells did not instruct their broker to sell any particular lot of IBM stock.
The Howells earned $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends.
Assume the Howells have $130,000 of wage income during the year.

c. Assume the Howells' short-term capital loss carryover from prior years is $82,300 rather than $2,300 as indicated above. If this is the case, how much short-term and long-term capital loss carryovers remain to be carried beyond 2024 to future tax years?

how would I calculate the short term capital gain

ik the long term = 0

but I cant figure out the short term

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