Requirements: 1. Complete Mr. McGees 2021 Schedule D (assume cost basis was reported to the IRS) and
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Question:
Requirements:
1. Complete Mr. McGee’s 2021 Schedule D (assume cost basis was reported to the IRS) and Form 8949.
2. How will Mr. McGee’s gain or loss affect his 2021 tax calculation? If it is a loss, how much of the loss is deductible? If it is a gain, how will the gain be taxed? Give a detailed answer.
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During 2021, Chaps McGee, S.S.# 252-86-1837 , completed the following stock transactions: Sales Date Sold Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund. During 2021, Chaps McGee, S.S.# 252-86-1837, completed the following stock transactions: Sales Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Sold Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund. During 2021, Chaps McGee, S.S.# 252-86-1837 , completed the following stock transactions: Sales Date Sold Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund. During 2021, Chaps McGee, S.S.# 252-86-1837 , completed the following stock transactions: Sales Date Sold Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund. During 2021, Chaps McGee, S.S.# 252-86-1837, completed the following stock transactions: Sales Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Sold Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund. During 2021, Chaps McGee, S.S.# 252-86-1837 , completed the following stock transactions: Sales Date Sold Price Stock 100 shs Microsoft 800 shs Lucent 500 shs Krispy Kreme Date Acquired 07/10/08 03/28/21 10/08/20 09/17/21 06/04/21 12/21/21 $11,450 $3,150 $8,850 Cost $995 $8,700 $6,190 In addition to the above transactions, Mr. McGee also had the following items related to the preparation of his 2021 tax return: 1. A short-term capital loss carryforward from 2020 of $5,700 2. On March 9, 2015 Mr. McGee purchased one acre of land as an investment, located in Gwinnett County, Georgia, at the intersection of Sugarloaf Parkway and Old Norcross Road. He paid $330,000, plus closing costs of $7,500. On June 2, 2021, he sold this acre for $510,000, less a 10% real estate commission. 3. Mr. McGee is also a partner in Three Dogs Enterprises, a partnership. His share of the partnership's long-term capital loss is $8,500. 4. Mr. McGee received a capital gain distribution of $400 during 2021 from the Vanguard Wellington Mutual Fund.
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Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
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