Question
Sarah sold the below property during 2017. None of the property was sold to a related party or in a wash sale. Sarah is in
Sarah sold the below property during 2017. None of the property was sold to a related party or in a wash sale. Sarah is in the 15% marginal tax bracket.
Adjusted Basis | Amount Realized | |
Sale of personal-use car held 2 years | 18,000 | 12,000 |
Stock F held for 6 months | 5,000 | 3,000 |
Stock G held for 3 months | 6,000 | 3,000 |
Stock H held for 5 years | 7,000 | 12,000 |
Stock I held for 3 months | 5,000 | 8,000 |
A. After the netting process, what is the amount of Sarahs net capital gain/loss?
B. What is the tax rate applicable to Sarahs net gain/loss?
Note: understand how your answer would change if, in addition to the above property transactions, Sarah also sold Stock J for a $5,000 short-term capital gain.
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