During 2014, Trevor has the following capital transactions:

During 2014, Trevor has the following capital transactions:

LTCG $ 6,000
Long-term collectible gain 2,000
STCG 4,000
STCL 10,000

After the netting process, the following results:
a. Long-term collectible gain of $2,000.
b. LTCG of $6,000, Long-term collectible gain of $2,000, and a STCL of $6,000.
c. LTCG of $6,000, Long-term collectible gain of $2,000, and a STCL carryover to 2015 of $3,000.
d. LTCG of $2,000.
e. None of these.

Answer: D

For the current year, David has a salary income of $80,000 and the following property transactions:

For the current year, David has a salary income of $80,000 and the following property transactions:

Stock investment sales—
Long-term capital gain $ 9,000
Short-term capital loss (12,000)
Loss on sale of camper (purchased 4 years ago and used for family vacations) (2,000)

What is David's AGI for the current year?


a. $76,000.
b. $77,000.
c. $78,000.
d. $89,000.
e. None of these.

Answer: B

Kirby is in the 15% tax bracket and had the following capital asset transactions during 2014:

Kirby is in the 15% tax bracket and had the following capital asset transactions during 2014:

Long-term gain from the sale of a coin collection $11,000
Long-term gain from the sale of a land investment 10,000
Short-term gain from the sale of a stock investment 2,000
Kirby's tax consequences from these gains are as follows:



a. (5% × $10,000) + (15% × $13,000).
b. (15% × $13,000) + (28% × $11,000).
c. (0% × $10,000) + (15% × $13,000).
d. (15% × $23,000).
e. None of these.

Answer: C

Perry is in the 33% tax bracket. During 2014, he had the following capital asset transactions:

Perry is in the 33% tax bracket. During 2014, he had the following capital asset transactions:

Gain from the sale of a stamp collection (held for 10 years) $30,000
Gain from the sale of an investment in land (held for 4 years) 10,000
Gain from the sale of stock investment (held for 8 months) 4,000
Perry's tax consequences from these gains are as follows:



a. (15% × $30,000) + (33% × $4,000).
b. (15% × $10,000) + (28% × $30,000) + (33% × $4,000).
c. (0% × $10,000) + (28% × $30,000) + (33% × $4,000).
d. (15% × $40,000) + (33% × $4,000).
e. None of these.

Answer: B

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim?

During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasure yacht for a $1,000 loss. Presuming adequate income, how much of these losses may Kim claim?

a. $0.
b. $1,000.
c. $2,000.
d. $3,000.
e. None of these.

Answer: C

Which, if any, of the following, is a correct statement relating to the kiddie tax?

Which, if any, of the following, is a correct statement relating to the kiddie tax?

a. If the parents are divorced, the income of the noncustodial parent is used to determine the allocable parental tax.
b. The components for the application of the kiddie tax are not subject to adjustment for inflation.
c. If the kiddie tax applies, the parents must include the income of the child on their own income tax return.
d. The kiddie tax does not apply if both parents of the child are deceased.
e. None of these.

Answer: D