Betty incurs the following transactions during the current year. Without considering the transactions, her 2019 AGI is
Question:
Betty incurs the following transactions during the current year. Without considering the transactions, her 2019 AGI is $92,000. Analyze the transactions and answer the following questions:
• On March 10, 2019, she sells a painting for $2,000. Betty is the artist, and she completed t he painting in 2014. Her basis for the painting is $50.
• On June 18, 2019, she receives $28,500 from the sale of stock purchased by her uncle in 2004 for $10,000, which she inherited on February 20, 2019, as a result of her uncle's death. The stock's FMV on that date is $30,000.
• On July 30, 2019, she sells land for $25,000 that was received as a gift from her brother on April 8, 2019, when the land's FMV was $30,000. Her brother purchased the land for $43,000 on October 12, 2011. No gift tax was paid.
a. What is her NSTCL or NSTCG?
b. What is her NLTCL or NLTCG?
c. What is Berry's AGI?
d. What is her capital loss carryforward to the next year?
Step by Step Answer:
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse