Mr. MM had the following items if income and loss
during the year.
Wages $40,000
No business bad debts $1,000
Gain or commodity features held for 16months. $2,000
Loss on stock held for 2 years $800
Flood damage on personal residence
attributed to a federally declared disaster $4,500.
Gain on stock held for 13months $5,000.
Compute MMs taxable capital gains to be reported in MMs income tax
return.
| MMs Short Term Capital Gain | Amount $ |
| Gain on Commodity | 2000 |
| Gain on stock | 5000 |
| Less : Loss on stock | 800 |
| Short Term Capital Gain | 6200 |
| Less: Casualty Loss Deduction | 4500 |
| Taxable Short Term Capital Gain | 1700 |
Mr. MM had the following items if income and loss during the year. Wages $40,000 No...