FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Property Transactions: Capital Gains and Losses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Essay

Review LaterAdd Note

Review Later

Carol had the following transactions during 2019: a painting held for two years and sold at a gain of $85,000? 100 shares of Gray stock held six months and sold for a loss of $6,000? 50 shares of Yellow stock held 18 months and sold for a gain of $36,000.Carol also had $264,000 of taxable income from other sources than these property transactions.What is Carol's net capital gain or loss and what is her taxable income?

Correct Answer

verified

Carol has taxable income of $379,000. \[ ...

View Answer

Show Answer

Question 52

Essay

Review LaterAdd Note

Review Later

Martha is unmarried with one dependent and files as head of household.She had 2019 taxable income of $45,000, which included $16,000 of 0%/15%/20% net long-term capital gain.What is her tax on taxable income using the alternative tax on net long-term capital gain method?

Correct Answer

verified

Martha has a tax of $3,203.Her tax on ot...

View Answer

Show Answer

Question 53

True/False

Review LaterAdd Note

For tax purposes, there is no original issue discount on a bond unless the bond is issued for less than its face value and the difference between the face value and the bond issue price is at least one-fourth of 1% of the redemption price at maturity multiplied by the number of years to maturity.

Hilda lent $2,000 to a close personal friend to help the friend avoid overdrawing the friend's checking account.The friend was supposed to repay the $2,000 within a month.Instead, the friend declared personal bankruptcy and Hilda will never recover any of the $2,000.What are the tax implications of these events for Hilda?

Janet received stock worth $4,000 at the time it was gifted to her by her father.He had acquired the stock several years earlier for $2,200.He paid no gift tax on the transfer to Janet.Janet sells the stock for $6,600 two months after receiving it.What are the nature and amount of Janet's gain or loss?

The possible holding periods for capital assets include:

Ranja acquires $200,000 face value corporate bonds for $186,000 when the bonds are issued.He holds the bonds as an investment for two years and then sells them for $198,000.He amortizes $2,000 of the OID.What tax issues does Ranja have with respect to these bonds?