Determine the tax consequences of these transactions.?
January 27, 2011 by
Filed under Silver Investment FAQ
Individual D is in the %35 tax bracket. This year he executee the following transactions:
Sale of shares of xyz:
sale price 2000, adjusted basis 1000, holding period 15 mos.
Sale of land held for investment :
sale price 9000, adjusted basis 3000, holding period 19 mos.
Sale of silver held for speculation:
sale price 5000, adjusted bais 7000, holding period 23 mos.
Sale of personal jewelry:
sale price 4000, adjusted basis 6000, holding period 60 months
I don’t even know where to begin. This is a homework question but it isn’t graded. We are going over them in class, but I would at least like to know how to do it because I don’t want to fall behind, so…I would really like it if you could tell me how to do it, rather than just give me an answer?
Thank you!!
And please, if I need a ‘schedule’ to do this, let me know which one(s).
Dear Lisa: Sch D
xyz sale of stock transaction $1000 long term gain taxed at 15%
land sale $6000 long term gain
silver a collectible loss long term $2000 (gain taxed at 28%)
personal items sold at loss not deductible but gain would be taxed.
Look at http://www.irs.gov and Sch D instructions
This advice was prepared based on our understanding of the tax law in effect at the time it was written and it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
Follow these rules:
1) Anything with a holding period over 12 months is a long-term gain.
2) you can tale losses on transactions entered into for profit, but not for the sale of personal items.
3) The tax rate on long term capital gain is 15%
4) Capital losses can offset capital gains, but losses on the sale of personal items cannot.