None Sue and Tim are married taxpayers in the 33% marginal taxbracket. In 2013, they sold common stock shares (which theyheld for more than 40 months) for a capital gain of $3,800.They also sold some technology stock for a long-term capitalloss of $9,000. In addition, they sold the home they had livedin for the past 10 years and experienced a $75,000 gain on thehouse. How much will their net capital gains (or losses) be for2013? How much will they pay (or save) in taxes as a result ofthese transactions?

1. Capital gains and losses: - Common stock gain: $3,800 (long-term) - Technology stock loss:…

Answered: Sue and Tim are married taxpayers in…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 57P

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Question: Sue and Tim are married taxpayers in the 33% marginal tax bracket. In 2013, they sold common stock shares (which they held for more than 40 months) for a capital gain of $3,800. They also sold some technology stock for a long-term capital loss of $9,000. In addition, they sold the home they had lived in for the past 10 years and experienced a $75,000 gain on the house. How much will their net capital gains (or losses) be for 2013? How much will they pay (or save) in taxes as a result of these transactions?
Beth and Bob are married entrepreneurs. Beth has a start-up sole proprietorship in which she works long hours. This year the business generated $500,000 of revenues and $800,000 of deductible business expenses. Bob is a partner in a new partnership, also working long hours. His share of the partnership loss for the year is $275,000. Fortunately, they both have trust funds so they are receiving $700,000 of taxable interest income and dividends in 2021. Due to this year's results, Beth and Bob will have an NOL carryover of a. $0. b. $575,000. c. $325,000. d. $51,000.

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