Ms. Tanya Forester dies during August, 2020. At the time of her death, she has a net capital loss carry forward of $21,800 [(1/2)($43,600)]. As the result of a deemed disposition at her death of her art collection, she has a taxable capital gain of $15,500. Ms. Forester has made no previous use of the lifetime capital gains deduction. Her 2020 employment income in the period prior to her death was $47,000. Describe the tax treatment of these items in her final tax return.

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The Answer of Ms. Tanya Forester dies during August, 2020. At the time of her death, she has a net capital loss carry forward of $21,800 [(1/2)($43,600)]. As the result of a deemed disposition at her death of her art collection, she has a taxable capital gain of $15,500. Ms. Forester has made no previous use of the lifetime capital gains deduction. Her 2020 employment income in the period prior to her death was $47,000. Describe the tax treatment of these items in her final tax return.

Ms Tanya Forester Dies During August, 2020