In 2024, Lora Fernandez had employment income of $50,000, a capital gain of$26,000, and a business investment loss of $30,000. What is the amount of Lora'sTaxable Income for 2023?$46,000$50,000$48,000$58,000

Business loss can't be setoff against salaries.

Answered: Taxable Income for 2023?

Business

Accounting

Taxable Income for 2023?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 49P

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

In 2024, Lora Fernandez had employment income of $50,000, a capital gain of
$26,000, and a business investment loss of $30,000. What is the amount of Lora's
Taxable Income for 2023?
$46,000
$50,000
$48,000
$58,000

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