Question

During the year, Tamara had capital transactions resulting in gains (losses) as follows: • Sold stock in ABC Company (acquired two years ago) ($1,500) • Sold collectible coins (held for more than one year) $2,000 • Sold stock in XYZ Company (acquired six months ago) ($4,100) • Sold stock in LMN Company (acquired three years ago) $500 a. As a result of these transactions, Tamara has an overall net short-term capital loss of $ . b. Is the amount of her overall net gain or loss limited this year? c. If "Yes", what is the limit. If "No", enter"0". $

Answer 1

Answer:

a. Tamara has an overall net short-term capital loss of $3,100

b. Yes

c. The limit is $3,000

Explanation:

a. In order to calculate the overall net short-term capital loss we would have to make the following calculation:

overall net short-term capital loss= -$4100+($2,000-$1,500+$500)

overall net short-term capital loss= -$3,100

Tamara has an overall net short-term capital loss of $3,100

b. According to the calculation of the overall net short-term capital the amount of her overall net loss is yes limited this year

c. According to the tax federal law, the limit is $3,000