1. During the current tax year, your clients, Mr. and Mrs. Howell, owned the following investment assets:

Investment Assets	Date Acquired	Purchase Price	Brokers Commission Paid at Time of Purchase
300 shares of IBM common	11/22/14	$10,350	$100
200 shares of IBM common	4/3/15	$43,250	$300
3,000 shares of Apple preferred	12/12/15	$147,000	$1,300
2,100 shares of Cisco common	8/14/16	$52,500	$550
420 Shares of Vanguard mutual fund	3/2/19	$14,700	No load fund*

*No commissions are charged when no load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and mutual fund in the current tax year and to reinvest in municipal bonds. The following investment assets were sold in the current tax year (Note: CY=2019):

Investment Assets	Date Sold	Sale Price	Brokers Commission Paid at Time of Sale
300 shares of IBM common	5/6/CY	$13,700	$100
3,000 shares of Apple preferred	10/5/CY	$221,400	$2,000
2,100 shares of Cisco common	8/15/CY	$63,250	$650
420 Shares of Vanguard mutual fund	12/21/CY	$15,700	No load fund*

*No commissions are charged when no load mutual funds are bought and sold.

The Howells broker issued them a Form 1099 showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $13,600 on the Form 1099 they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning the current tax year:

• The Howells received a Form 1099 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/CY.

• In 2015, Mrs. Howell loaned $6,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 20CY, and Mrs. Howell has been notified that she will not be receiving any repayment of the loan.

• The Howells have a $2,300 short-term capital loss carryover and a $4,800 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 $3,000 in municipal bond interest, $3,000 in interest from corporate bonds, and $4,000 in qualified dividends.

Assume the Howells have $130,000 of wage income during the year.

a. Are there any tax planning recommendations related to the stock sales that you should have shared with the Howells before their decision to sell?

b. Assume the Howells short-term capital loss carryover from prior years is $82,300 rather than $2,300 as indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carried beyond the current tax year to future tax years?