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I need help with form 8949 mainly Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan
I need help with form 8949 mainly
Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. Date Sold Cost Sales Price 03/12/19 $3,000 $6,000 32,000 05/23/19 36,000 Date Item Acquired Blue stock (10 shares) 11/10/18 Purple stock (100 shares) 12/13/17 Beige stock (50 shares) 12/14/14 Red stock (100 shares) 06/29/18 Black stock (100 shares) 05/15/18 Gray stock (100 shares) 04/12/17 07/14/19 13,000 14,500 05/18/19 26,000 27,000 10/18/19 67,000 67,800 10/18/19 89,000 88,200 a. Determine the nature and amount of the gain or loss for each of the stock transactions. Item Type of Gain or Loss Amount Blue stock Short-term capital gain 3,000 Purple stock Long-term capital loss 4,000 Beige stock Long-term capital gain 1,500 Red stock Short-term capital gain 1,000 Black stock Long-term capital gain 800 Gray stock Long-term capital loss 800 b. What is Phil and Susan's AGI? of Phil and Susan have a net short-term capital gain of $ and a net long-term capital loss $ 2,500 . Consequently, there is an overall net short-term capital gain of $ Phil's and Susan's AGI is $ 37,800 Feedback c. Complete a Form 8949 for the Hammonds. Assume that the stock sale information was reported to the Hammonds on a Form 1099-B and that basis information was provided to the IRS. If required, use the the minus sign to indicate a loss. OMB No. 1545-0074 Form 8949 Sales and Other Dispositions of Capital Assets Go to www.irs.gov/Form8949 for instructions and the latest information. File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D. Department of the Treasury Internal Revenue Service 2019 Attachment Sequence No. 12A Name(s) shown on return Phil and Susan Hammond Social security number or taxpayer identification number 123-45-6789 Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to 1 (h) (b) (C) Short-term transactions not reported to you on Form 1099-B Adjustment, if any, to (a) (c) (d) (e) gain or loss. If you enter Gain or (loss). Description of property Date acquired Date sold or Proceeds Cost or other an amount in column (g), Subtract column (Example: 100 sh. XYZ (Mo., day, yr.) disposed of (sales price) basis. See the enter a code in column (f). (e) from column Co.) (Mo., day, yr.) (see Note below and See the separate (d) and combine instructions) see Column (e) instructions. the result with in the separate (9) column (9) instructions Code(s) from Amount of instructions adjustment 10 shares of Blue Company 11/10/18 03/12/19 (f) 100 shares of Red Company 06/29/18 05/18/19 1 (a) (b) Description of property Date acquired (Example: 100 sh. XYZ (Mo., day, yr.) Co.) Date sold or disposed of (Mo., day, yr.) Adjustment, if any, (h) (d) (e) to gain or loss. If you Gain or Proceeds Cost or other basis. enter an amount in (loss). (sales price) See the Note below column (9), enter a Subtract (see and see Column (e) code in column (f). See column (e) instructions) in the separate the separate from column instructions instructions. (d) and combine the Code(s) result with (9) Amount of column (9) from adjustment instructions 100 shares of Purple Company 12/13/17 05/23/19 50 shares of Beige Company 12/14/14 07/14/19 100 shares of Black Company 05/15/18 10/18/19 100 shares of Gray Company 04/12/17 10/18/19Step by Step Solution
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