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Alton received a Form 1099-B that shows a net sales price of $3,665 on the sale of 600 shares of FNP Company.
He bought the stock on October 21, 2016, and sold it on October 22, 2017. His basis in the stock is $2,080, of which $80 is a commission fee.
What is the amount and nature of Alton’s gain?
 
$1,585 short-term gain.
$1,585 long-term gain
Correct
$1,665 short-term gain.
$1,665 long-term gain.
 
3,665 - 2,080
   
In 2005, Duncan purchased 2,000 shares of stock for $52,500 in a midsize local company with gross assets of $15,000,000. In 2017,
Duncan sold the stock for $70,000. How is the gain treated for tax purposes?
 
$17,500 capital gain and taxed at preferential rates.
$8,750 excluded from gross income under § 1202 and $8,750 taxed at regular rates.
$8,750 excluded from gross income under § 1202 and $8,750 taxed at 28
$13,125 excluded from gross income under § 1202 and $4,375 taxed at preferential rates.
   
Francisco, a single taxpayer, has income from his W-2 of $95,500. He also has a short-term capital loss of $9,651,
a short-term capital gain of $3,300, and a long-term capital gain of $6,090. What is Francisco’s AGI for 2017?
 
$95,239
$95,500.
$98,800.
$104,890.
 
9651 - 3300 = 6351 - 6090= 261
95500 - 261
   
In 2017 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2008. At the time of the gift,
the FMV of the stock was $29,550 and Tim’s basis was $31,400. If Ann sells the stock for $33,266 in 2017,
what are the nature and amount of the gain from the sale?
 
$1,866 long-term gain
$3,716 long-term gain.
$1,866 short-term gain and $1,850 long-term gain.
$1,866 long-term gain and $1,850 short-term gain.
   
Blair sold the following stocks in 2017: 200 shares of Dearborn Investments, purchased on May 15, 2016,
for $3,215 and sold on January 9, 2017, for $4,360; and 40 shares of State Street Investments, purchased on November 7,
2014, for $11,980 and sold on March 29, 2017, for $8,750. What are the pre-net amount and nature of the gain (loss)
on the sale of these transactions on Blair’s 1040 return for 2017?
 
$1,145 short-term gain and $3,030 long-term loss.
$1,145 short-term gain and $3,230 long-term loss
$1,885 net long-term loss.
$2,085 net long-term loss.
   
Jim sells a parcel of land for $76,000 cash, and the buyer assumes Jim’s liability of $10,340 on the land. Jim’s basis is $64,700.
What is the gain or loss on the sale?
 
$960 loss.
$960 gain.
$11,300 gain.
$21,640 gain
   
Amal received a Form 1099-DIV with a capital gain distribution of $275.
She also received a Form 1099-B from the sale of 240 shares of AMS stock she purchased for $4,200 plus a $41 commission fee on February 22, 2016.
The net proceeds of the stock sale were $3,740 (the commission fee was $27) and the trade date was February 22, 2017.
What are the amount and nature of Amal’s gain (loss) on these transactions?
 
$474 short-term loss and $2750 long-term gain.
$474 long-term loss and $275 short-term gain.
$501 long-term loss and $275 short-term gain.
$501 short-term loss and $275 long-term gain
  On May 20, 2016, Jessica purchased land for $106,473 to use in her business.
She sold it on May 21, 2017, for $103,595.
What are the amount and type of loss on this sale if Jessica does not have any other sales from a trade or business?
 
$2,878 deferred loss.
$2,878 long-term capital loss.
$2,878 ordinary loss
$2,878 § 1231 loss.
   
In 2014, Grant purchased land for $105,450 for use in his business.
He sold it in 2017 for $117,850.
What are the amount and type of gain on this sale, before netting of any other gains and/or losses?
 
$12,400 § 1231 gain
$12,400 ordinary gain.
$12,400 short-term capital gain.
$12,400 long-term capital gain.
  Shannon bought an apartment building in July 2011 for $385,000 and sold it for $515,000 in 2017.
There was $88,054 of accumulated depreciation allowed on the apartment building.
Assuming that Shannon is in the 33% tax bracket, how much of her gain is taxed at 25%?
 
$0.
$41,946.
$88,054
$130,000.
   
A capital asset includes all of the following except:
 
a. taxpayer vacation home
b. inherited property
c. property used in a trade or business
d. stock portfolio
   
Inventory sold by a company is an ordinary income asset that appears on Form 4797-Sale of Business Assets.
 
False
 
Capital Asset (1221)
   
An ordinary income asset is any short-term or long-term asset used in a business.
 
False
 
Business Asset (1231)
   
Why is the distinction between "ordinary" and "capital" so important?
 
Because of the preferential tax rate treatment on capital gains versus ordinary gains.
   
The tax treatment of a capital gain or loss varies depending on all of the following except:
 
a. the holding period.
b. the basis of the asset sold.
c. the taxpayer's regular taxable income.
d. the netting of all gains and losses.
   
For sales after 2017, what are the maximum capital gain rates on the following?
 
a. Collectibles gains
28%
 
b. §1202 gains
28%
c. Unrecaptured §1250 gains
25%
   
Net §_______ losses are treated as ordinary losses subject to deductibility limit provisions of $3,000 per year.
 
1221
   
Net §_________ losses are treated as ordinary losses not subject to deductibility limit provisions of $3,000 per year.
 
1231
   
Net §1231 gains receive _____ ______ _______ treatment.
 
Preferential tax rate
   
Francisco, a single taxpayer, has income from his W-2 of $95,360.
He also has a short-term capital loss of $6,309 a short-term capital gain of $2,400, and a long-term capital gain of $3,656.
What is Francisco's AGI for 2019?
 
a. $92,719.
b. $95,107.
c. $95,360.
d. $95,613.
   
In 2019 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2010.
At the time of the gift, the FMV of the stock was $29,300 and Tim's basis was $31,000.
If Ann sells the stock for $32,834 in 2019, what is the nature and amount of the gain from the sale?
 
a. $1,834 long-term gain.
b. $3,534 long-term gain.
c. $1,834 short-term gain and $1,700 long-term gain.
d. $1,834 term gain and $1,700 short-term gain.
   
In 2019 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2010.
At the time of the gift, the FMV of the stock was $29,300 and Tim's basis was $31,000.
If Ann sells the stock for $26,834 in 2019 what is the nature and amount of the loss from the sale?
 
a. $2,466 short-term loss.
b. $1,700 long-term loss.
c. $4,166 long-term loss.
d. $2,466 short-term loss and $1,700 long-term loss.