Required Information [The following information applies to the questions displayed below.) During 2021. your clients, Mr. and Mrs. Howell, owned the following investment assets: Broker's Commission Paid at Investment Assets Date Acquired Purchase Price Time of Purchase 300 shares of IBM common 11/22/2018 $ 10,490 $ 100 200 shares of IBM common 4/3/2019 43,390 300 3,880 shares of Apple preferred 12/12/2019 161, eee 1,300 2,180 shares of Cisco common 8/14/2020 53,902 550 420 shares of Vanguard mutual fund 3/2/2021 16,100 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 the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021: Broker's Commission Paid at Investment Assets Date Sold Sale Price Time of Sale 300 shares of IBM common 5/6 $ 15,180 $ 100 3,880 shares of Apple preferred 10/5 222, Bee 2,080 2,100 shares of Cisco common 8/15 63,390 650 451 shares of Vanguard mutual fund 12/21 17,180 No-load fund *No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $15.000 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 2021 The Howells received a Form 1099-B 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 6/30/2021. In 2014, Mrs. Howell loaned $7.400 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan The Howells have a $3.700 short-term capital loss carryover and a $6.200 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 $3.700 in municipal bond interest, $3.700 in interest from corporate bonds, and $5.400 in qualified dividends. Assume the Howells have $165.000 of wage income during the year. c. Assume the Howells' short-term capital loss carryover from prior years is $83.700 rather than $3.700 as indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carried beyond 2021 to future tax years? Short-term capital loss Long-term capital loss
