Question

Scott Bean is single and his marginal tax rate is 24%. He had the following stock transactions in 2019.

	Sales Price		Basis		Purchased	Sold
Cisco Preferred Stock		25,000		6,000	7/15/2010	1/12/2019
Dreyer's Ice Cream Stock		10,000		14,000	7/1/2018	4/20/2019
Novell Common Stock		2,000		10,000	2/12/2016	11/29/2019
IBM Stock		4,000		3,000	8/2/2007	5/2/2019
ABC Common Stock		6,000		9,000	12/30/2018	10/20/2019

a: What is the net short-term capital gain or loss?  Enter a loss as a negative number, for example -1,000.

b: What is the net long-term capital gain or loss? Enter a loss as a negative number, for example -1,000.

c: What is the amount of the net capital gain or loss?  Enter a loss as a negative number, for example -1,000.

d: At what tax rate will the net capital gain or loss be taxed?  Enter as a whole number, for example, enter 20 for 20%.

Answer 1

Particular	Nature of Capital Gain	LTCG	STCG
Cisco Preferred Stock	LTCG	$ 19,000
Dreyer's Ice Cream Stock	STCG		$ (4,000)
Novell Common Stock	LTCG	$ (8,000)
IBM Stock	LTCG	$ 1,000
ABC Common Stock	STCG		$ (3,000)
Total		$ 12,000	$ (7,000)

a) Net Short-term Capital Gain or Loss = - $ 7,000

b) Net Long-term capital Gain or Loss = $ 12,000

c) Net Capital Gain = $ 5,000 ($ 12,000 - $ 7,000)

d) Tax Rate = 15%