For the current year, Sarah has salary of 50,000. In addition, she has the following capital...
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For the current year, Sarah has salary of 50,000. In addition,she has the following capital transactions:
Long-term capital gain(15%) 12,000
Short-term capitalgain 8,000
Long-term capital loss(28%) (4,000)
Short-term capitalloss (10,000)
What is her taxable income for the year? She has a short-termcapital loss carry-over of 5,000 from the previous year. Thestandard deduction amount for her is 12,000
Question 6 options:
37,000
39,000
49,000
59,000
None of the above
For the current year, Sarah has salary of 50,000. In addition,she has the following capital transactions:
Long-term capital gain(15%) 12,000
Short-term capitalgain 8,000
Long-term capital loss(28%) (4,000)
Short-term capitalloss (10,000)
What is her taxable income for the year? She has a short-termcapital loss carry-over of 5,000 from the previous year. Thestandard deduction amount for her is 12,000
Question 6 options:
37,000 | |
39,000 | |
49,000 | |
59,000 | |
None of the above |
Answer & Explanation Solved by verified expert
| Particulars | Short-term |
Long-term Collectible |
Long-term other |
| Gains | $ 8,000 | $ 12,000 | |
| Losses | $ (15,000) | $ (4,000) | $ - |
| Net gain / (loss) | $ (7,000) | $ (4,000) | $ 12,000 |
| Less: long-term capital loss | $ 4,000 | $ (4,000) | |
| Less: short-term capital loss | $ 7,000 | $ - | $ (7,000) |
| Balance | $ - | $ - | $ 1,000 |
Short-term capital losses include short-term capital loss carryover. Taxable income of taxpayer is:
| Taxable income | Amount |
| Salary | $ 50,000 |
| Capital gains | $ 1,000 |
| Gross income | $ 51,000 |
| Deductions: | |
| Standard deduction | $ (12,000) |
| Taxable income | $ 39,000 |
Thus, taxable income is $39,000. Please rate the answer.
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