LO 3,8 Citron, a calendar year taxpayer, began business in January 2017. It had a long-term capital gain of $5,000 in 2017 and a long-term capital loss of $10,000 in 2018. For both years, Citron had an operating profit in excess of $100,000. How are these capital gain and loss transactions handled for income tax purposes if Citron is: An individual? A C Corporation? An S Corporation?

LO 3,8 Citron, a calendar year taxpayer, began business in January 2017. It had a long-term capital gain of $5,000 in 2017 and a long-term capital loss of $10,000 in 2018. For both years, Citron had an operating profit in excess of $100,000. How are these capital gain and loss transactions handled for income tax purposes if Citron is: An individual? A C Corporation? An S Corporation?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 36P

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LO.3 Green Corporation, a calendar year taxpayer, has ordinary income of 10,000 and a long-term capital loss of 12,000 in 2019. Green incurred a long-term capital gain of 2,500 in 2016 and a long-term capital gain of 5,000 in 2018. a. How much of the long-term capital loss can be deducted in 2019? b. Carried back to prior years? c. Carried forward to future years? d. What is the nature (long- or short-term) of any carrybacks or carryforwards?
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