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Required Information The following information applies to the questions displayed below.) This year, Jack O. Lantern incurred a $84750 loss on the worthlessness of his

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Required Information The following information applies to the questions displayed below.) This year, Jack O. Lantern incurred a $84750 loss on the worthlessness of his stock in the Creepy Corporation (CC). The stock, which Jack purchased in 2005, met all of the $1244 stock requirements at the time of issue. In December of this year, Jack's wife, Jill, also incurred a $77,200 loss on the sale of Eerie Corporation (EC) stock that she purchased in July 2005 and that also satisfied all of the 51244 stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return a. How much of the losses incurred on the two stock sales can Jack and Jill deduct this year, assuming they do not have capital gains in the current or prior years? Total deductible loss Required information The following information applies to the questions displayed below) This year, Jack O. Lantern incurred a $84,750 loss on the worthlessness of his stock in the Creepy Corporation (CC). The stock, which Jack purchased in 2005, met all of the 51244 stock requirements at the time of issue. In December of this year, Jack's wife, Jill, also incurred a $77,200 loss on the sale of Eerie Corporation (EC) stock that she purchased in July 2005 and that also satisfied all of the 51244 stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return. b. Assuming they did not engage in any other property transactions this year, how much of a net capital loss will carry over to next year for Jack and Jill? Capital loss carryover Required information The following information applies to the questions displayed below) This year, Jack O. Lantern incurred a $84,750 loss on the worthlessness of his stock in the Creepy Corporation (CC). The stock, which Jack purchased in 2005, met all of the $1244 stock requirements at the time of issue. In December of this year, Jack's wife, Jill also incurred a $77,200 loss on the sale of Eerie Corporation (EC) stock that she purchased in July 2005 and that also satisfied all of the $1244 stock requirements at the time of issue. Both corporations are operating companies. Assume that they file a joint return c. What would be the tax treatment for the losses if Jack and Jill reported only $73,500 of taxable income this year, excluding the securities transactions? Total loss deductible Ordinary loss carryover Capital loss carryover

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