Question
During the current year, Han and Leia sold the following assets: Asset Market Value Tax Basis Holding Period Chewbacca stock 52,000 38,000 > 1 year
During the current year, Han and Leia sold the following assets:
Asset | Market Value | Tax Basis | Holding Period |
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Chewbacca stock | 52,000 | 38,000 | > 1 year |
C-3PO stock | 21,000 | 39,000 | > 1 year |
Qui-gon stock | 42,000 | 32,000 | < 1 year |
Death Star stock | 16,000 | 39,000 | < 1 year |
Antique light saber collection | 15,000 | 33,000 | > 1 year |
Apartment complex* | 328,000 | 148,000 | > 1 year |
*$100,000 of the gain is 25 percent gain (Section 1250 recapture).
Han and Leia have other income of $135,000 in wages and $5,600 of qualifying dividends before considering the tax effect of their asset sales.
What is their tax liability for 2020 assuming they file a joint return?
Tax Liability:
What is their net short term/long term gains and losses
Short Term | 28% | 25% | 0/15/20% |
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Use the table below to show your work for the net Capital Gains/Losses. Omitting this information will result in points being deducted.
Asset | Short Term | 28% | 25% | 0/15/20% |
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SHOW WORK PLEASE
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