# Taxes... Due in a day

SoccerBoss
Category:
Accounting
Price: \$25 USD

Question description

• Sold stock received as an inheritance from Pamela's Mother for \$35,000. Pamela's Mother purchased the stock 10 years ago for \$9,000. On the date of Pamela's Mother's death the stock's FMV was \$29,000. Pamela's Mother died three years ago.
• Sold stock purchased ten months ago for \$6,000 for \$3,200.
• Sold land that was a gift from James's Uncle for \$150,000. The property was received on June 15, 1995, when the property had a \$125,000 FMV. The taxable gift was \$115,000 because the annual exclusion was \$10,000 in 1995. James's Uncle purchased the land on July 27, 1980, for \$85,000. At the time of the gift, gift tax of \$5,000 was paid. A sales commission of \$3,000 was paid at the closing on the sale of the land.
• Sold stock purchased four years ago for \$1,350 for \$1,725.
• Sold stock purchased 13 months ago for \$10,000 for \$9,200.
• Purchased stock on July 8th for \$11,000; the stock is currently held in an investment account.
• The Brock's have a \$8,000 short-term loss carryforward from the prior year.
• On January 1, 2009 Pamela purchased an 8%, \$100,000 corporate bond for \$92,277. The bond was issued on January 1, 2008, and matures on January 1, 2014. Interest is paid semiannually, and the effective yield to maturity is 10% compounded semiannually. On July 1, of the current tax year, Pamela sold the bond for \$95,949.

Prepare a schedule that shows the:

• Proceeds of sale for each transaction above;
• Cost basis for each transaction above;
• The gain or loss for each transaction above; and
• Identify if the gain calculated above is short-term of long-term.

Calculate:

• Net short-term capital gain or loss before consideration of the prior year loss carryforward;
• Net long-term capital gain or loss before consideration of the prior year loss carryforward;
• Amount of capital gain to be reported; and
• Amount of capital loss that will be carried forward to next year.

Be sure to show all of your calculations.

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(Top Tutor) Daniel C.
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