In October of 2015 Bobby sold a desk for $500. He had originally purchased it on

Question

In October of 2015 Bobby sold a desk for $500. He had originally purchased it on January 31, 2015 for $800. On November 30, 2015 he sold two lots of securities. The first lot was purchased on March 1, 2015 and sold for a gain of $400. The second lot was purchased May 1, 2014 and sold for a gain of $350. In January he remodeled his bathroom and sold his antique tub for $900 which he had purchased in January of 2011 for $700. Finally he also sold his home in 2015 at a loss of $11,000 which he had owned for the past ten years. He had ordinary income in 2015 of $60,000. What is Bobby's net capital gain/loss for 2015 and how will it be reported on his tax return?

Explanation / Answer

Loss from selling desk= 800-500= 300

Gain from selling securities= 400+350= 750

Gain from bath tub= 900-700= 200

Loss from selling house= 11000

Capital loss= 11000+300-750-200= 10350

In tax return capital loss of 10350 will be declared. This can be used offset future capital gain profits.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.