Problem 8.5

During 2017, Gerry Appel, who is single, received a Form 1099-B showing the following information:

Description	Date Acquired	Date Sold	Selling Price	Cost Basis
Purple stock	06/21/08	08/15/17	$18,000	$12,500
Rose stock	04/18/17	12/07/17	12,000	19,200
Blue stock	12/18/09	10/02/17	25,000	21,000

His taxable income is $59,000 (including gains and losses from above) (Form 1040, line 43).

Calculate Gerry's net capital gain or loss and tax liability using Schedule D of Form 1040, Parts I, II, and III; Form 8949, Parts I and II; and the qualified dividends and capital gains tax worksheet.

Click here to access the tax tables.

If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. If an amount box does not require an entry or an amount is zero, enter "0".

SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99)	Capital Gains and Losses Attach to Form 1040 or Form 1040NR. Go to www.irs.gov/ScheduleD for instructions and the latest information. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.	OMB No. 1545-0074
		2017 Attachment Sequence No. 12

Name(s) shown on return Gerry Appel

Your social security number

Part I

Short-Term Capital Gains and LossesAssets Held One Year or Less

See instructions for how to figure the amounts to enter on the lines below.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)		(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)
This form may be easier to complete if you round off cents to whole dollars.
1a	Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . . . .
1b	Totals for all transactions reported on Form(s) 8949 with Box A checked.
2	Totals for all transactions reported on Form(s) 8949 with Box B checked.
3	Totals for all transactions reported on Form(s) 8949 with Box C checked.
4	Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . .				4
5	Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1				5
6	Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				6	()
7	Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back				7

Part II

Long-Term Capital Gains and LossesAssets Held More Than One Year

See instructions for how to figure the amounts to enter on the lines below.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)		(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)
This form may be easier to complete if you round off cents to whole dollars.
8a	Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . . . .
8b	Totals for all transactions reported on Form(s) 8949 with Box D checked.
9	Totals for all transactions reported on Form(s) 8949 with Box E checked.
10	Totals for all transactions reported on Form(s) 8949 with Box F checked.
11	Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				11
12	Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1				12
13	Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				13
14	Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				14	()
15	Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				15

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 11338H

Schedule D (Form 1040) 2017