ACCT $355-$ Netting Capital Gains & Losses Assignment $($Assignment $7)$ Worth $10$ points

Due Thursday, April $25$ by $12$:$30$ pm$.$ Submit on Canvas. No review prior to submission. No late assignments will be accepted.

During $2023,$ Allison is single with no dependents and had $$206,000$ of taxable income before considering the following property related items:

Taxable income before considering the following property related items: $206,000$

Part A$.$ Fill in the amount realized, adjusted basis, realized gain $($loss$)$ and character of the gain or loss in the boxes below # shares selling price cost price Amount Realized Adjusted Basis Realized Gain $($Loss$)$ or Income Character $(15\%,25\%,28\%,$ ordinary, STCL$)$

$1$ Received qualified dividends from Company X of $$3,100.3,100$

$2$ Sold $1,600$ shares of Company Y on October $20,2023$ for $$82$ per share. The stock was purchased on April $10,2018$ for $$61$ per share. $1,6008261$

$3$ Sold $900$ shares of Company Z on November $25,2023$ for $$64$ per share. The stock was purchased on March $15,2023$ for $$73$ per share. $9006473$

$4$ Sold a stamp collection on June $9,2023$ for $$11,900.$ The stamp collect was inherited on February $5,2009$ when it was valued at $$7,600.$ It originally cost $$4,900.$

$5$ A $25\%$ gain $($unrecaptured $1250$ gain$)$ of $$7,300.($This is a long$-$term capital gain taxed at $25\%.)7,300$

Total gain $($loss$)$ from property transactions

Taxable income before considering the following property related items: $206,000$

Taxable Income A $+$ B

Portion of TI taxed at preferential rates B

Portion of TI taxed as ordinary income A

Part B$.$ Calculate the taxable income, portion of TI that is taxed as ordinary income, the portion of TI that will be taxed with LTCGs at preferential tax rates $($not taxed as ordinary income$),$ and tax on taxable income before credits:

STCL $15\%25\%28\%$ Total Portion of TI taxed as ordinary income A

Tax on ordinary income

Data from tax rate schedule

Tax on LTCGs C

Portion of TI taxed at preferential rates B Tax on taxable income before credits D

Tax on LTCGs C

Summary Table $2023$

Taxable Income $($TI$)$ A $+$ B

Portion of TI that is taxed at ordinary income rates A

Portion of TI that is taxed at preferential rates $($with LTCG$,$ not taxed as ordinary income$)$ B

Tax on taxable income before credits $($alternative tax on taxable income$)$ D