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During 2021, your clients, Mr. and Mrs. Howell, owned the following investment assets: Because of the downturn In the stock market, Mr. and Mrs. Howell

image text in transcribed During 2021, your clients, Mr. and Mrs. Howell, owned the following investment assets: Because of the downturn In the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund In 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021: The Howells' broker Issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $16,000 on the Form 1099-B they recelved. In addition to the sales reflected in the table above, the Howells provided you with the following additional Information concerning 2021: - The Howells recelved a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reInvested In 31 additional Vanguard mutual fund shares on 6/30/2021. - In 2014, Mrs. Howell loaned $8,400 to a frlend who was starting a new multilevel marketing company called LD3. The frlend declared bankruptcy in 2021, and Mrs. Howell has been notlfied she will not be receIving any repayment of the loan. - The Howells have a $4,700 short-term capital loss carryover and a $7,200 long-term capital loss carryover from prior years. - The Howells did not Instruct their broker to sell any particular lot of IBM stock. - The Howells earned $4,200 In municipal bond Interest, $4,200 in Interest from corporate bonds, and $6,400 In qualified dividends. - Assume the Howells have $190,000 of wage Income during the year. Assume the Howells' short-term capital loss carryover from prior years is $84,700 rather than $4,700 as Indicated above. If this is the :ase, how much short-term and long-term capital loss carryover remains to be carrled beyond 2021 to future tax years

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