Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.

a. What should he do before the end of 2018?

Question

Marilyn

Business

6 November, 21:25

Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.

a. What should he do before the end of 2018?

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Answers (1)

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Nancy Simon · Answer 1

Solution:

Short-term capital loss of $13,000

Taxable income (not including the loss) of $123,000

He has several inventories, which can be marketed for a long-term profit.

Since Byron can only deduct $3,000 for the capital loss he must sell stock at a capital gain of $10,000 to offset the amount over the $3,000 deduction maximum.

Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.a. What should he do before the end of 2018?

Near the end of 2018, Byron realizes that he has a net short-term capital loss of $13,000 for the year. Byron has taxable income (not including the loss) of $123,000 and is single. He owns numerous stocks that could be sold for a long-term capital gain.

a. What should he do before the end of 2018?