Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 33

Haneen has taxable income of $105,000 without consideration of capital gain or loss transactions. She has a short-term capital gain of $10,000, a long-term capital loss of $2,000, and a short-term capital gain of $4,000. What is the effect of these gains and the loss on taxable income? What are the amount and nature of any carryover? Assuming that none of the gains or losses is from collectibles or unrecaptured §1250 property, at what rate will the gains or losses be taxed to Haneen, who is in the 25% tax bracket for ordinary income?