Question
Sally sold the below assets during 2022: Stock A held for 2 years - $5,000 gain Stock B held for 6 months - $1,000
Sally sold the below assets during 2022: Stock A held for 2 years - $5,000 gain Stock B held for 6 months - $1,000 loss Stock C held for 5 years - $2,000 loss Stock D held for 3 months - $3,000 gain After the netting process, what is the amount of Sally's total net capital gain? What amount of her net capital gain is taxed at the preferential tax rates (0/15/20%) that apply to long-term capital gains? Assume that Sally had an additional $10,000 short-term capital loss from the sale of Stock E (in addition to the gains and losses on the sale of Stocks A-D). What is the amount of Sally's net capital loss deduction for 2022 (i.e. what amount of Sally's net capital loss can be used to offset Sally's ordinary income in 2022)? What is the amount and treatment of Sally's remaining net capital loss? Assume instead that Sally only sold Stocks A-D, but Stock B was sold for a $4,000 loss. What is the tax treatment of Sally's capital gains and losses?
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