Faith, who is single, sells the following assets during 2016: 20,000 shares of qualified small business
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• 20,000 shares of qualified small business stock at a loss of $62,000. Faith bought the stock in 2011.
• 1,200 shares of Geelong Industries at a gain of $4,500. Faith bought the stock in 2013.
• An XZ10 sailboat at a loss of $3,500. Faith acquired the boat, which she used in her leisure hours, in 2012.
• A 1973 Holden Deluxe automobile at a gain of $3,700. Faith never used the car for business.
• 50 shares of Fremantle, Inc., at a gain of $1,300. Faith bought the stock in 2016 and sells it to her brother.
• 75 shares of Fitzroy Corporation at a loss of $300. Faith bought the stock in 2012 and sells it to her sister.
Calculate Faith's net capital gain (loss) for 2016.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Concepts In Federal Taxation 2017
ISBN: 9781305965119
24th Edition
Authors: Kevin E. Murphy, Mark Higgins
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