Jill sold the following stocks on December 31, 2021:

Stock	Sales price	Original cost	Purchase date	ST	LT
A	100,000	1,000	6/30/07
B	90,000	2,000	7/30/07
C	80,000	3,000	8/30/07
D	70,000	4,000	9/30/07
E	60,000	10,000	10/30/07
F	50,000	20,000	11/30/07
G	40,000	60,000	12/30/07
H	30,000	40,000	1/30/20
I	20,000	50,000	2/30/20
J	10,000	60,000	3/30/20
K	9,000	70,000	4/30/20
L	8,000	80,000	5/30/20
M	7,000	90,000	6/30/20
N	6,000	100,000	7/30/20

She paid brokerage commissions of 5% of the sales price on all of the above sales.

1. What is the net long term and short term gain or loss from the above_________________________

2. Jill sold her personal automobile in 2021 for $20,000. She had originally purchased it for $30,000 two years earlier. The tax impact of this transaction is:_________________________

3. In addition, Jill(who is single) sold her principle residence in December 2021 for $1 million. She had originally purchased it two months earlier for $200,000. Selling expenses were $20,000. She sold it because she had a job transfer out of town. The tax impact of this transaction is:_________________________

4. She also sold a painting in December for $75,000 which she had originally purchased 5 years ago for $20,000. The tax impact of this transaction is:_________________________

5. She sold a patent on an invention she created one year ago, for $30,000. She figured it had cost her $5000 in legal fees and other out-of-pocket expenses to create the invention and file paperwork to receive a patent. The tax impact of this transaction is:_________________________

6. She bought an option to buy Apple stock for $1000. She bought on January 1 2018, and let it lapse on June 30 of 2021. The tax impact of this transaction is:_________________________

7. Assuming she also had long (short) term capital loss carryovers from the prior year of $1000 ($2,000). compute the overall tax consequences of the above to Jill for 2021. Make columns for capital gains/losses, ordinary gains/losses, and 28% gains/losses_____________________________________________________

Answer rating: 100% (QA)

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