Question

Mr. and Mrs. Revel had $230,400 AGI before considering capital gains and losses.

Required:

1. On May 8, they recognized an $10,900 short-term capital gain. On June 25, they recognized a $17,550 long-term capital loss. What is the amount and character of each carryforward?
2. On February 11, they recognized a $2,190 long-term capital gain. On November 3, they recognized a $1,400 long-term capital loss. What is the amount and character of each carryforward?
3. On April 2, they recognized a $6,075 long-term capital loss. On September 30, they recognized a $5,130 short-term capital loss. What is the amount and character of each carryforward?
4. On January 12, they recognized a $5,550 short-term capital loss. On July 5, they recognized a $2,300 long-term capital gain. What is the amount and character of each carryforward?

Options for Answers include: "Long-term capital loss carryforward" "Short-term capital loss carryforward" or "No carryforward" along with the amount. Question 3 has two slots for answers, the rest of them just have one. Thank you very much, I will rate if you try your best (:

Answer 1

Requirement A

Long term capital loss	-17,550
Short Term Capital gain	10,900
Net long term capital loss	-6,650
Limit is up-to $3000
AGI	230,400
Less: Deductions	-3,000
Adjusted AGI	227,400
Carryforward	3,650

Requirement B

Long term capital loss	-1,400
Long Term Capital gain	2,190
Net long term capital gain	790
AGI	230,400
Less: Deductions	0
Adjusted AGI	230,400

** There is no carry forward, there is a $790 net gain.

Requirement C

Short term capital loss	-5,130
Long Term Capital loss	-6,075
Net capital loss	-11,205
deduction upto $3000
AGI	230,400
Less: Deductions	-3000
Adjusted AGI	227,400
Carryforward (11205-3000)	8,205

Requirement D

Short term capital loss	-5,550
Long Term Capital gain	2,300
Net short term capital loss	-3,250
deduction up-to $3000
AGI	230,400
Less: Deductions	-3000
Adjusted AGI	227,400
Carry forward (3250-3000)	250