Exam 7: Capital Gains and Other Sales of Property

Hiroko,a single taxpayer,has wage income of $80,000.In addition,she has $5,000 in long-term capital losses,$4,000 in long-term capital gains,and $4,000 in short-term capital gains.What is Hiroko's AGI for 2014?

All of the following statements regarding Section 1231 are incorrect except:

Yolanda,a single taxpayer,has W-2 income of $87,500.She also has a short-term capital loss of $7,000,a short-term capital gain of $1,000,and a long-term capital gain of $2,000.What is Yolanda's AGI for 2014?

In 2014,Marty has a net short-term capital loss of $2,400,a net long-term capital loss of $12,000,and wage income of $59,850. a.What is Marty's capital loss deduction for 2014? b.What amount of the capital loss qualifies as a carryover? c.What is Marty's total income for 2014 before additions/deductions for adjusted gross income?

Section 1202 allows for an exclusion of up to 50% of the eligible gain on the sale or exchange of qualified small business stock if held for more than one year.

In 2014,Linda gave her son,Jonathan 425 shares of School Products,Inc.common stock.Linda paid $8,350 for the stock in 2008.At the date of the gift,the FMV of the stock was $5,800.Assuming that there is no gift tax paid,if Jonathan sells the stock for $5,000,he will recognize:

Tamiko buys a painting from a collector for resale in her gallery for $3,500.She sold it 15 months later for $5,500.What are the nature and amount of the gain on the sale of the painting?

All net losses exceeding the $3,000 per year are carried over as long-term losses because they will have occurred more than one year ago.

If the property's fair market value at the date of the gift is lower than the adjusted basis,then the property's basis for determining loss is its fair market value on that date.

Which one of the following is a capital asset?

Juanita is a sole proprietor who has some outstanding receivables she wishes to sell.The receivables have a $16,000 FMV and a basis of $10,000.Juanita sells the receivables for $12,500.What gain or loss does Juanita recognize on the sale?

Francisco sells a parcel of land for $90,000 cash and the buyer also assumes Francisco's liability of $10,000.The basis of his land is $60,000.What is the gain or loss realized on the sale?

Dan sold 135 shares (assume 100 are long-term)of Elite Mutual Fund on July 26,2014 for $95 per share and received a 1099-B (box 3 was not checked for basis)to record the sale of the shares.Dan's investment portfolio includes the following purchases of Elite Mutual Fund: In 2014,Dan will recognize:

Norman received shares of stock as a gift from his uncle in 2012.At the time of the gift,the stock had a FMV of $5,000.The uncle purchased the stock in 2010 and had a basis of $6,000.If Norman sells the stock for $7,000 in 2014,he will report a:

Marquez purchased some equipment for $58,750 on August 15,2013.He decided he did not need the equipment so he sold it on June 13,2014 for $56,500.The equipment was subject to depreciation of $6,964 for 2013 and 2014.What gain or loss will Marquez recognize on the sale of the equipment?

Patty and Rich,married filing jointly,have $385,000 in MAGI and $90,000 of net investment income (NII).They will pay a surtax of:

In 2011,Joe purchased land for $73,500 for use in his business.He sold it in 2014 for $100,000.What is the gain on the sale before any netting?

Keeley purchased 1,000 shares in FAM,Inc.for $10,000 on December 19,2013.The company went bankrupt on July 10,2014 with no hope of recovery for the shareholders. a.On what date is the stock deemed to be worthless? b.What is the nature of the loss?

Kwon-Lee sold 200 shares held in FNP Mutual Fund in 2014 for $22,500 and received a 1099-B to record the sale of the shares.Kwon-Lee's investment portfolio includes the following purchases of FNP Mutual Fund stock: Assuming Kwon-Lee uses the single category average cost method,he will recognize

The top tax rates for an individual with long-term capital gains on the sale of stock and on the sales of collectibles,sold after December 31,2012 are: