Homework Answers
Calculation of short term capital gain
| Description | Proceeds | Cost basis | Gain/loss |
| Stock A | 7500 | 11000 | -3500 |
| Stock C | 5200 | 2700 | 2500 |
| Total | 12700 | 13700 | -1000 |
Calculation of Long term capital gain :
| Description | Proceeds | Cost basis | Gain\loss |
| Stock B | 9000 | 401200 | -392200 |
| Stock D | 7500 | 2500 | 5000 |
| Antique | 20000 | 19000 | 1000 |
| Rental property | 110000 | 119000 | -9000 |
| Total | -395200 |
The net capital gain \losses =-396200
Therefore the losses are restricted to 3000 and balance 393200 will be carried forward to future years
Hence the total Adjusted gross income
= Ordinary income = 346000
Capital gain\loss = -3000
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Total AGI. = 343000
Calculation of taxable income
Total AGI. =343000
Standard deduction. = -24400
------------------------------------------------------
Total taxable income = 318600
Calculation of 2019 tax liability
Up-to $9700- - 0% - 0
From 9700-19400. -12% - 1164
From 19400-78950. - 22% - 13101
From 78950- 168400 -24% - 21468
From 168400-321450-32% - 48064 (calculated till taxable income 318600)
----------------------------------------
Total tax liability for 2019. - 83797
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