The following facts apply to Eliot, an individual, in the current year: April 2: Sold shares of
Question:
The following facts apply to Eliot, an individual, in the current year:
April 2: Sold shares of stock, purchased on April 1 of the previous year, for a $2,000 gain
May 15: Sold equipment used in Eliot’s business, which had been purchased in July of the previous year, for a $2,000 gain
July 12: Sold shares of stock, purchased in February of the previous year, for a $7,000 gain
November 3: Sold equipment used in Eliot’s business, which had been purchased in January of the current year, for a $1,000 loss
December 9: Sold shares of stock, purchased on February 22 of the current year, for a $3,000 loss
Considering only the above facts, what is Eliot’s net capital gain for the current year?
a. $7,000 long-term capital gain
b. $9,000 long-term capital gain
c. $5,000 long-term capital gain
d. $6,000 long-term capital gain
Step by Step Answer:
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen