In 2020, Rosalva sold stock considered short-term for a gain of $1,200 and stock considered long-term for a loss of $3,530. She also had a $3,160 short-term loss carryover from 2019 and a $1,445 long-term loss carryover from 2019.
Required:
What amount will be shown as a short-term gain for 2020?
What amount will be shown as a long-term gain for 2020?
How much of the loss is deductible in 2020?
What is the amount of long-term carryover to 2021?
Jake purchased a $195,000 crane for his construction business. He sold the crane for $165,000 after taking $109,200 of depreciation. Assume Jake is in the 35% tax rate bracket.
Required:
On what form would the gain or loss originally be reported?
What is the amount of gain or loss on the sale?
What amount of the gain or loss is subject to ordinary tax rates?
