Problem 8-29 (LO. 1, 4) In 2023, Beth Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Beth purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions: Long-term capital loss Long-term capital loss carryover from 2022 Short-term capital gain Short-term capital loss a. What is Beth's net capital gain or loss? Beth has a net long-term capital Beth has a net short-term capital As a result, Beth has an overall of $ ($6,000) (12,000) 21,000 (7,000) b. Complete the letter to Beth explaining the tax treatment of the sale of her personal residence. Assume Beth's income from other sources puts her in the 24% bracket. March 17, 2024 Ms. Beth Jarow 1120 West Street Ashland, OR 97520 Dear Ms. Jarow: SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 This letter is in response to your request for an explanation of the tax treatment of the sale of your residence. As you know, the residence was sold for your cost. Thus, you had a $ the home was a personal-use asset, tax law loss on the residence sale. Because that loss to be deducted on your tax return. Thank you for the opportunity to be of service. Please telephone me if you have additional questions. Sincerely, Steve Warren, CPA Partner