Luck Corporation , which was formed January 1, 2015, has a net short-term capital gain of $60,000 and a net long-term capital loss of $100,000 during 2020. Luck Corporation had taxable income from other sources of $200,000. Prior years' transactions included the following (note 2019 had no capital gains or losses): 2015- net long term capital gain of 150k 2016- net short term capital gain of 24k 2017- net short term capital gain of 12k 2018- net long term capital gain of 8k Luck's carryover to 2021 is: Select one: a. $0 b. $40,000 long-term capital loss c. $20,000 long-term capital loss d. $20,000 short-term capital loss e. None of the above

Luck Corporation , which was formed January 1, 2015, has a net short-term capital gain of $60,000 and a net long-term capital loss of $100,000 during 2020. Luck Corporation had taxable income from other sources of $200,000. Prior years' transactions included the following (note 2019 had no capital gains or losses): 2015- net long term capital gain of 150k 2016- net short term capital gain of 24k 2017- net short term capital gain of 12k 2018- net long term capital gain of 8k Luck's carryover to 2021 is: Select one: a. $0 b. $40,000 long-term capital loss c. $20,000 long-term capital loss d. $20,000 short-term capital loss e. None of the above

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 68P

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During 2020, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 If an amount is zero, enter "0". a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return. How much is Gorilla's net capital loss for 2020?$ What is the amount of the capital loss deduction on Gorilla's 2020 tax return?$ Any excess net capital loss is carried back or forward as a short-term capital loss . b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Carried back to 2017 $ Carried back to 2018 $ Carried back to 2019 $…
During 2020, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years’ transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 How are the capital gains and losses treated on Gorilla’s 2020 tax return? Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried. If Gorilla is a sole proprietorship rather than a corporation, how would the owner report these transactions on her 2020 tax return? Assume that Gorilla Corporation’s capital loss carryfoward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of the…
During 2020, Gorilla Corporation, a calendar year C corporation, has net shortterm capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years’ transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 a. How are the capital gains and losses treated on Gorilla’s 2020 tax return? b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. c. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried. d. If Gorilla is a sole proprietorship rather than a corporation, how would the owner report these transactions on her 2020 Tax return e. Assume that Gorilla Corporation’s capital loss carryfoward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of…
During 2020, Gorilla Corporation, a calendar year C corporation, has net short- term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years’ transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. c.Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried.
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