In: Accounting
For the current year, Sarah has salary of 50,000. In addition, she has the following capital transactions:
Long-term capital gain (15%) 12,000
Short-term capital gain 8,000
Long-term capital loss (28%) (4,000)
Short-term capital loss (10,000)
What is her taxable income for the year? She has a short-term capital loss carry-over of 5,000 from the previous year. The standard deduction amount for her is 12,000
Question 6 options:
37,000 |
|
39,000 |
|
49,000 |
|
59,000 |
|
None of the above |
Particulars | Short-term |
Long-term Collectible |
Long-term other |
Gains | $ 8,000 | $ 12,000 | |
Losses | $ (15,000) | $ (4,000) | $ - |
Net gain / (loss) | $ (7,000) | $ (4,000) | $ 12,000 |
Less: long-term capital loss | $ 4,000 | $ (4,000) | |
Less: short-term capital loss | $ 7,000 | $ - | $ (7,000) |
Balance | $ - | $ - | $ 1,000 |
Short-term capital losses include short-term capital loss carryover. Taxable income of taxpayer is:
Taxable income | Amount |
Salary | $ 50,000 |
Capital gains | $ 1,000 |
Gross income | $ 51,000 |
Deductions: | |
Standard deduction | $ (12,000) |
Taxable income | $ 39,000 |
Thus, taxable income is $39,000. Please rate the answer.