Problem $4-60($LO$.5)$

During $2024,$ Inez $($a single taxpayer$)$ had the following transactions involving capital assets:

Gain on the sale of unimproved land $($held as an investment for $3$ years$)$$$6,000$Loss on the sale of a camper $($purchased $2$ years ago and used for family vacations$)(5,000)$Gain on the sale of ADM stock $($purchased $9$ months ago as an investment$)2,450$Gain on the sale of a fishing boat and trailer $($acquired $18$ months ago at an auction and used for recreational purposes$)1,000$

Question Content Area

a$.$ Indicate the tax treatment for each item.

Gain on the sale of unimproved land

Long$-$term capital gainNot taxableOrdinary incomeShort$-$term capital gainLong$-$term capital gain

Loss on the sale of a camper

Long$-$term capital lossNot deductibleOrdinary lossShort$-$term capital lossNot deductible

Gain on the sale of ADM stock

Long$-$term capital gainNot taxableOrdinary incomeShort$-$term capital gainShort$-$term capital gain

Gain on the sale of a fishing boat and trailer

Long$-$term capital gainNot taxableOrdinary incomeShort$-$term capital gainLong$-$term capital gain

Overall, Inez has

a long$-$term capital gaina long$-$term capital lossordinary incomea long$-$term capital gain

of

a short$-$term capital gaina short$-$term capital lossordinary incomeordinary lossa short$-$term capital gain

of

b$.$If Inez has taxable income $($including the property transactions$)$ of $$198,450,$ what is the income tax regarding these transactions? Her marginal tax rate is $32\%.$

If Inez has taxable income $($including the property transactions$)$ of $$32,250,$ what is the income tax regarding these transactions? Her marginal tax rate is $12\%.$