answer in class 7-1

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May 9, 2024

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See. 2024 In Class problems - matching problems in connect for HW cT 36. Amal received a Form 1099-DIV with a capital gain distribution of $210 and also a Form 1099-B from the sale of 240 shares of AMS stock purchased for $2,9 $28 commission fee on February 22, 2022. The net proceeds of the stock sale were $2,700 (the commisStonfee(was $14), and the trade date was February 22, 2023. What are the amount and nature of Amal’s gain (loss) on these transactions? Seled AMS - Strcic. —Sedd 2T00 2|22 |22 —> 2)22 ]33 Bass 29 2% She A ~ene 2287 Losg ST 37. Rayna bought an apartment building in July 2017 for $345,000 and sold it for $370,000 in July 2023. There was $75,272 of accumulated depreciation allowed on the apartment building. If Rayna is in the 35% tax bracket, how much of the gain is taxed at 25%? Sl 8700 — z@q‘?.zc? Bas:s (3¢s000 - 1§ 2.12) 160272 Gara _ - ¢ 15.777_7 Orck, ITne, Tax 24 > 4 e ——— e —————— 25,000 L7Cq ProA. 39. Renaldo, a s1ngle taxpayer has a W-2 showing income of $95,360. Renaldo also has a short-term cgpltal loss of $6,309, a short-term capital gain of $2,400, and a long-term cap1ta1 gain of $3,656. What is Renaldo’s AGT for 2023? or —p stcl 6309 >{3 qoa D ¢ 253y LTCL Srch 2zyd 0) ; - 7 Gs107 AGET (zs LTC LTCG 3lSP 40. In 2023, Ann received 1,000 shares of stock as a gift from Tim, who purchased them in 2014. At the time of the gift, the FMV of the stock was $29.300 and Tim’s basis was $3 1.000. If Ann sellsthe stock for $32,834 in 2023, what are the nature and amount of the gain from the sale? T——Gaun. FVW & Bans ¥ 32,839 W Z 31,000 Mo ; 1, R34 Qo LTCH 41.1In 2023, Ann received 1,000 shares of stock as a gift from Tim, who purchased them in 2014. 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 2023, what are the nature and amount of the loss from the sale? Wie - CLagyy a v ChHerso - 24,834 Ss\4 {29, 800) Fmv f’l‘q(‘.b Lesy ST -

Problems 42. Umair sold some equipment he used in his business on August 29, 2023, that was originally purchased for $65,000 on November 21, 2021. The equipment was depreciated using the 7-year MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer. G _ S 000 a. Assume Umair sold the equipmen $44,000: —~ 17,249 (1) What is the amount o 1g foss on the sale of the equipment? — (2) Is the nature of the gain or loss considered ordinary or long-term? “'_I, LRI 44 000 Ady. Rady Ly, s C3,171) Lsy g L Ocd. Liss ST b. Assume Umair sold the equipment for $50,000: (1) What is the amount of realized gain or loss on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? SV 000 ek e (L © as\) 12 wg\_z 249 M&m Form4197 44. Haneen has taxable income of $126,000 without consideration of capital gain or loss transactions. Haneen has a short-term capital gain of $20,000, a long-term capital loss of $12,000, and a short-term capital gain of $7,000. Assume none of the gains or losses are from collectibles or unrecaptured §1250 property, and Haneen is in the 24% tax bracket. looo ST - 20,00 © a. What is the total short-ter loss 21006 B et Q2 ,000) . By ooo b. What is the total long-term gain QJ— 0 0) > c. What is the carryover amount? d. Is the gain or loss after netting taxed at the p1ta1 rate? A\ ST - 47. Joaquin purchased a $235,000 cfane for a construction business. The crane was sold for $175,000 after taking $115,000 of depreciation. Assume Joaquin is in the 35% tax rate bracket. 235 000 ] a. On what form would the gain or loss originally be reported? <474 115,000 D b. What is the amount of gain or loss on the sale? 1156t0 ~128,c00 = 95000"'"( ’a__c.) OO0 Ady. Bagay c. What amount of the gain or loss is subj ect to ordinary tax rates? Goun. A\ ord.\na - 8¢S

K 50. Saleh sold the following stock in 2023. ABC Inc., is a §1202 qualified small business (QSB). Asset Cost Acquired Sale Price Sale Date ‘ ¥ ABC, Inc. 200 shares $153,000 1/10/22 $200,000 . 4/3023 = 47,000 Gown LT DEF, Inc. 100 shares 24,600 11/15/19 14,000 212823 = (w, L OO oss LT GH]I, Inc. 50 shares 19,350 3/31/22° 17,000 8/30223 2 (2,30 ) |Lesy &T a. Complete the chart: , , é 2,930 LTcL Asset Amount of Realized | Amount of Recognized | IRC Section J Gain (Loss) in (Loss) I ABC (..(,“ 600 ’ ZS‘S—OO ’.2%’/ 3' 20 2. DEF Q0 Lo Clo (,00) 122\ - Cap Aot GHI (2/3s0) (2 350) $1aa1 — v | b. After netting, what is the total gain or loss? —=lo STO remoin “F e c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? ix /, fode, " 51. Kwan acquired a warehouse for business purposes on August 30, 2003. The building cost $420,000. Kwan took $227,600 of depreciation on the building and then sold it for $500,000 on July 1, 2023. What are the amount and nature of Kwan’s gain or loss on the sale of the warehouse? Y20 00O ), 0C a. What is the adjusted basis for the warehouse? (__4} z} 0 89? b. What amount of the gain or loss is realized on the sale of the warehouse? - q.L', Y40 O @ c. What amount of the gain or loss is unrecaptured? = 227600 Qepe. d. At what rate is the unrecaptured gain or loss taxed? > Q< /. e. What amount of the gain or loss qualifies as a § 1231 gain or loss? oY sna \ %0 00D (\QL_LPOC)) - — 207,00 () ( 221 ©ov) §1297 _ Leznwef)oT @ QUJQOO §13-3)

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