Antoine sold the following stock in 2020. ABC, Incorporated, is a § 1202 qualified small business (QSB).
Asset Cost Acquired Sale Price Sale Date
ABC, Incorporated, 150 shares $ 108,750 01/10/2009 $ 139,500 04/30/2020
DEF, Incorporated, 124 shares 21,700 11/15/2016 16,120 02/28/2020
GHI, Incorporated, 62 shares 21,700 03/31/2019 19,592 08/30/2020
Required:
Complete the chart.
After netting, what is the total gain or loss?
If Antoine is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?
In 2020, Rosalva sold stock considered short-term for a gain of $1,200 and stock considered long-term for a loss of $3,530. She also had a $3,160 short-term loss carryover from 2019 and a $1,445 long-term loss carryover from 2019.
Required:
What amount will be shown as a short-term gain (loss) for 2020?
What amount will be shown as a long-term gain (loss) for 2020?
How much of the loss is deductible in 2020?
What is the amount of long-term carryover to 2021?
Jake purchased a $195,000 crane for his construction business. He sold the crane for $165,000 after taking $109,200 of depreciation. Assume Jake is in the 35% tax rate bracket.
Required:
On what form would the gain or loss originally be reported?
What is the amount of gain or loss on the sale?
What amount of the gain or loss is subject to ordinary tax rates?
