In: Accounting
1. Marv and Delores, married taxpayers who file a joint return, sell their personal residence on December 1st for $180,000. They lived in the house for the past 52 years. Their adjusted basis in their home was $35,000. Calculate their recognized (taxable) gain on the sale of their personal residence.
2. The following transactions were reported on a 1099-B. The taxpayer, who files as single, had taxable income of $100,000. Calculate the tax owed on the transactions.
Description | No. of Shares | Date Acquired | Date Sold | Proceeds (less commissions) | Cost (Basis) |
Rust Corp | 100 | 11/01/2016 | 12/20/2017 | 1700 | 3200 |
Rio Motors Inc. | 150 | 07/15/2008 | 06/28/2017 | 9543 | 7648 |
Rider Corporation | 65 | 11/29/2017 | 11/25/2017 | 7222 | 2549 |
Doors & Floors Org | 55 | 10/01/2016 | 10/20/2017 | 5550 | 5600 |
Yours-Mine-Ours Corp | 75 | 09/01/2007 | 01/03/2017 | 3750 | 4000 |
Bagels R Us Corp | 63 | 08/01/2002 | 12/31/2017 | 1575 | 1400 |
1 | Sales of old house | $ 180,000 | |||||
Less: | |||||||
Basis of old house | $ 35,000 | ||||||
Gain from the old house | $ 145,000 | ||||||
2 | Date Acquired | Date Sold | Proceed | Cost | |||
Rust Corp | 11-01-2016 | 12/20/2017 | 1700 | 3200 | -1500 | LT | |
RIO Motors | 07/15/2008 | 06-28-2017 | 9543 | 7648 | 1895 | LT | |
Rider Corporation | 11/29/2017 | 11/25/2017 | 7222 | 2549 | 4673 | ST | |
Doors & Floors Org | 10-01-2016 | 10/20/2017 | 5550 | 5600 | -50 | LT | |
Yours-Mine-Ours Corp | 09-01-2007 | 01-03-2017 | 3750 | 4000 | -250 | LT | |
Bagels R Us Corp | 08/01/2002 | 12/31/2017 | 1575 | 1400 | 175 | LT | |
Assume Tax Year 2017 | Tax Rate | Tax Owed | |||||
Total Long Term Capital Gains | 270 | 15% | 40.5 | ||||
Total Short Term Capital Gain | 4673 | 28% | 1308.44 | ||||
Total Tax Owed on Capital Gains | 1348.94 |