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##### Determine his capital gain or loss on this sale.

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Question

6. Julie and Gus are married and have no children. They expect to have \$380,000 of taxable income in the next year and are considering whether to purchase a house that would provide additional itemized deductions of \$114,000 from mortgage interest and property taxes.;Required;A. What is their marginal tax rate for purposes of making this decision?;B. What is the possible tax savings if they buy the house?;7. Sally, age 40, is blind. She has one dependent child who lives with her and received the following amounts this year.;Insurance proceeds from the death of her grandfather \$ 10,000;Child support payments from her ex-spouse 5,000;Salary 45,000;Court awards for the crash that made her blind. None of the payments were punitive.;100,000;Interest income from her bank 6,000;Interest income from city of Dallas bonds 4,000;Required;A. Calculate Sally?s taxable income.;B. Calculate Sally?s tax liability.;8. Mr. Orange had the following capital transactions in 2014;Date Acquired Cost Date Sold Selling Price;01/13/11 \$ 4,500 01/10/14 \$ 3,000;05/10/13 \$ 3,000 02/25/14 \$ 4,000;08/09/07 \$ 38,000 07/06/14 \$ 45,000;11/17/13 \$ 6,000 11/16/14 \$ 2,000;07/10/13 \$ 1,500 12/20/14 \$ 5,500;Required;A. What is Mr. Orange?s net long term capital gain or loss?;B. What is Mr. Orange?s net short term gain or loss?;C. What is his net capital gain or loss? How will it affect his taxable income?;?;9. Patrick purchased 100 shares of ABC stock on December 15, 2013 for \$5,775. During 2014 the following events occurred;February 2 10% stock dividend was distributed (nontaxable);March 2 2 for 1 stock split occurred;August 2 5% stock dividend was distributed (nontaxable);On December 16, 2014, Patrick sold 100 shares of ABC for \$3,600.;Required;A. Determine his capital gain or loss on this sale.;B. Determine the number of the remaining shares he owns and their basis.

Paper#24216 | Written in 18-Jul-2015

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