Question

Grayson is a 24% tax rate bracket and has sold the following stocks in 2018

Description Date purchased Basis Date Sold Amount Realized

Stock A 1/23/1994 $7,500 7/22/2018 $4,700

Stock B 4/10/2018 $14,500 9/13/2018 $18,130

Stock C 8/23/2016 $11,375 10/12/2018 $16,150

Stock D 5/19/2008 $5,430 10/12/2018 $12,775

Stock E 8/20/2018 $7,475 11/14/2018 $3,625

a) What is Grayson's net short-term capital gain or loss from these transactions?

b). What is Grayson's net long -term gain or loss from these transactions?

c). What is Grayson's overall net gain or loss from these transactions?

Net Capital gain or loss _________________

d). What amount of the gain, if any, is subjected to the preferential rate for certain capital gains?

Amount______________

Answer 1

a)

Stock	Holding Period	Amount Realized	Basis	Gain (loss)
Stock B	Short Term	$             18,130.00	$ 14,500.00	$    3,630.00
Stock E	Short Term	$               3,625.00	$    7,475.00	$ (3,850.00)
Net short-term capital loss				$     (220.00)

b)

Stock	Holding Period	Amount Realized	Basis	Gain (loss)
Stock A	Long Term	$               4,700.00	$    7,500.00	$ (2,800.00)
Stock C	Long Term	$             16,150.00	$ 11,375.00	$    4,775.00
Stock D	Long Term	$             12,775.00	$    5,430.00	$    7,345.00
Net long-term capital gain				$    9,320.00

c)

Net long-term capital gain	$               9,320.00
Net short-term capital loss	$                 (220.00)
Net Capital gain	$               9,100.00

d)$9,100 is subject to the Preferential rate