Answer:
b. $700
Explanation:
Todd's capital gains = -$1,000 (bad debt) - $2,000 (gain on commodities held for 2 years) - $800 (loss on stock held for 2 years) - $4,500 (flood damage) + $5,000 (gain on stocks held for 13 months) = $700
Capital losses due to federally declared natural disasters can offset capital gains.
Answer:
Todd Johnson
Todd's taxable capital gain for the tax year is:
d. $6,200
Explanation:
a) Data and Calculations:
Gain on commodities held 16 months $2,000
Loss on stock held 2 years $(800)
Gain on stock held 13 months $5,000
Net Capital Gains (Long-term) $6,200
b) A capital gain or loss exists on property such as a home, car, and investment property, like stocks and bonds when is sold. Short-term capital gain or loss is differentiated from long-term capital gain or loss. Usually, long-term capital gain or loss is calculated for assets held more than a year before disposal, while short-term gain or loss is calculated separately for assets sold within a year of being held.
