In 2019, Isabella sold several shares of different stocks held for investment.The following is a summary of her capital transactions for the year: $\begin{array}{lrrrr}
\underline{\text { Stock }}&\underline{\text { Purchased }} &\underline{\text { Sold }}&\underline{ \text { Selling Price }} &\underline{\text { Cost }}\
\mathrm{ABC} &02 / 15 / 19 &07 / 15 / 19 & \$ 2,200 & \$ 1,750 \
\mathrm{DEF} & 10 / 25 / 12 & 08 / 01 / 19 & 3,500 & 2,300 \
\mathrm{GHI} & 10 / 25 / 19 & 12 / 15 / 19 & 800 & 1,000 \
\mathrm{JKL} & 12 / 28 / 13 & 12 / 18 / 19 & 750 & 900
\end{array}$
What is the amount of Isabella's net capital gains or losses for 2019?

Question

In 2019, Isabella sold several shares of different stocks held for investment.The following is a summary of her capital transactions for the year: $\begin{array}{lrrrr}
\underline{\text { Stock }}&\underline{\text { Purchased }} &\underline{\text { Sold }}&\underline{ \text { Selling Price }} &\underline{\text { Cost }}\
\mathrm{ABC} &02 / 15 / 19 &07 / 15 / 19 & \$ 2,200 & \$ 1,750 \
\mathrm{DEF} & 10 / 25 / 12 & 08 / 01 / 19 & 3,500 & 2,300 \
\mathrm{GHI} & 10 / 25 / 19 & 12 / 15 / 19 & 800 & 1,000 \
\mathrm{JKL} & 12 / 28 / 13 & 12 / 18 / 19 & 750 & 900
\end{array}$
 What is the amount of Isabella's net capital gains or losses for 2019?

Quizplus · Accepted Answer

To calculate Isabella's net capital gains or losses for 2019, we need to consider each stock transaction individually and classify them as either short-term or long-term based on the holding period. The holding period is determined by the time between the purchase and sale dates. If the holding period is more than a year, it's considered long-term; otherwise, it's short-term.- ABC: Sold for $2,200, cost $1,750. Gain = $450 (short-term, held less than a year).- DEF: Sold for $3,500, cost $2,300. Gain = $1,200 (long-term, held more than a year).- GHI: Sold for $800, cost $1,000. Loss = $200 (short-term, held less than a year).- JKL: Sold for $750, cost $900. Loss = $150 (long-term, held more than a year).Net long-term capital gain = $1,200 (DEF) - $150 (JKL) = $1,050.Net short-term capital gain = $450 (ABC) - $200 (GHI) = $250.Therefore, Isabella has a $1,050 long-term capital gain and a $250 short-term capital gain for 2019.

In 2019, Isabella Sold Several Shares of Different Stocks Held