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AC 401 Taxation for Individuals Chapter 7 Problem 7-2 Filing Status: Married filing jointly (no dependents) Tax Year: 2022 Taxpayers: Jake & Pam Tucker
AC 401 Taxation for Individuals Chapter 7 Problem 7-2 Filing Status: Married filing jointly (no dependents) Tax Year: 2022 Taxpayers: Jake & Pam Tucker Investments @ 12/31/21: Sh Stock Acquired 300 Cisco 4/2/2017 Price 10,350 Commission 100 200 Cisco 5/1/2019 43,250 300 3,000 Microsoft 11/12/2020 147,000 1,300 2,100 420 IBM Janus * 7/13/2021 52,500 2/1/2022 14,700 550 0 * Mutual Fund 2022 Tax-related items $130,000 W-2 income $3,000 municipal bond interest Investment Sales Prior Tax-related items: $2,300 short-term capital loss carryover $4,800 long-term capital loss carryover $3,000 corporate bond interest $30,000 itemized deductions $4,000 qualified dividends Sh Stock 300 2,100 IBM 451 Sold Cisco 5/6/2022 13,700 3,000 Microsoft 10/5/2022 221,400 8/15/2022 63,250 Janus 12/21/2022 15,700 Price Commission 100 2,000 650 0 1099-B were issued from broker for everything except mutual fund that showed sales proceeds net of commission 1099-B from Janus showed a $900 lg-term capital gain distribution which was reinvested in 31 shares on 6-30-22 Uses FIFO method for stock sales Other: 2015 loan $6,000 to a friend to start a business that went bankrupt in 2022 Assignment: A. Schedule out each investment transaction sub-totaling them between short-term and long-term gains or losses B. Compute the total short-term and long-term capital loss/gains C. Complete the netting process and indicate the amount to move to the from of Form 1040, Line 7 (Capital Gain or loss) D. Compute the 2022 tax liability E. Outline any tax planning recommendations related to the stock sales that you should have shared with the Tuckers prior to their decision to sell F. Assume the Tucker's short-term capital loss carryover from prior years is $82,300 rather than $2,300. How much short-term and long-term capital loss carryover remains to be carried over to 2023?
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