Barton Foster dies during July, 2020. He has a net capital loss carry forward of $27,000 [(1/2)($54,000)] at his death.
His death results in a deemed disposition of his portfolio of public company shares which creates a capital gain of $32,000. Mr. Foster has made no previous use of the lifetime capital gains deduction. In addition, prior to his death, he has employment income of $61,000.
Describe the tax treatment of these items in his final return.

Question

Quizplus · Accepted Answer

The Answer of Barton Foster dies during July, 2020. He has a net capital loss carry forward of $27,000 [(1/2)($54,000)] at his death.
His death results in a deemed disposition of his portfolio of public company shares which creates a capital gain of $32,000. Mr. Foster has made no previous use of the lifetime capital gains deduction. In addition, prior to his death, he has employment income of $61,000.
Describe the tax treatment of these items in his final return.

Barton Foster Dies During July, 2020