4-2 (Algorithmic) What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, and Net Capital Gains (LO 4.1, 4.2, 4.3, 4.5) During 2021, Tom sold GM stock for $11,800. The stock was purchased 4 years ago for $16,520. Tom also sold Ford Motor Company bonds for $41,300. The bonds were purchased 2 months ago for $35,105. Home Depot stock, purchased 2 years ago for $1,180, was sold by Tom for $1,770. Calculate Tom's net gain or loss, and indicate the nature of the gain or loss. 5,005 X Net short-term capital gain Problem 4-10 Rental Income and Expenses (LO 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter "0". Rental income Expenses: 6,000 Real estate taxes 1,100 Mortgage interest 2,000 Utilities and maintenance 1,000 Depreciation 2,250 X 6,350 X Net rental income Loss carried forward to 2022 350 Problem 4-11 (Algorithmic) Passive Loss Limitations (LO 4.8) Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1993. He also acquired a rental house in 2021, which he actively manages. During 2021, Walter's share of the partnership's losses was $28,000, and his rental house generated $26,000 in losses. Walter's modified adjusted gross income before passive losses is $133,500. If an amount is zero, enter "0". a. Calculate the amount of Walter's allowable loss for rental house activities for 2021. x Feedback b. Calculate the amount of Walter's allowable loss for the partnership activities for 2021. Feedback c. What may be done with the unused losses, if anything? The unused losses may be carried forward to future passive income in those years. tax years indefinitely, to reduce