Question
Star-Lord and Gamora have taxable income of $412,000 (all ordinary) before considering the tax effect of their asset sales (shown below).What is their net capital
Star-Lord and Gamora have taxable income of $412,000 (all ordinary) before considering the tax effect of their asset sales (shown below).What is their net capital gain/loss (be sure to show work for potential partial credit)?What is their tax liability for 2019 assuming they file a joint return?
Asset
Market Value
Tax Basis
Gain/loss
Held
Loki stock
12,500Market Value
3,900Tax Basis
< 1 year
Grout Stock
29,000Market Value
42,000Tax Basis
> 1 year
Hulk antique collection
185,000Market Value
95,000 Tax Basis
> 1 year
Thor stock
$60,000Market Value
$37,000Tax Basis
> 1 year
Wasp stock
39,000Market Value
36,000Tax Basis
< 1 year
Rogue stock
22,000Market Value
34,000Tax Basis
< 1 year
Asgard Rental House
370,000Market Value
210,000Tax Basis
> 1 year
Storm stock
77,300Market Value
63,600Tax Basis
> 1 year
$45,000 of the rental house gain is 25% gain (1250 subject to recapture)
The couple also had a $18,000 long term capital loss carryforward from prior years.
Tax Liability
Net capital Gain/Loss
Gain
Show your work/netting of gains and losses
Loki
Grout
Hulk
Thor
Wasp
Rogue
Asgard
Storm
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started