Brenda sells stock she purchased in 2005 for a $7,500 gain in 2018. In August 2018, she also sells land she purchased as an investment in December 2017 at a loss of $9,000.
I.For 2018, Brenda's tax on the $7,500 gain is $1,125.
II.Brenda can deduct $3,000 of the $9,000 loss in 2018.
III.For 2018, Brenda has a net long-term capital loss of $9,000.
IV.Brenda can only deduct a capital loss of $1,500 in 2018.

Question

Brenda sells stock she purchased in 2005 for a $7,500 gain in 2018. In August 2018, she also sells land she purchased as an investment in December 2017 at a loss of $9,000.
I.For 2018, Brenda's tax on the $7,500 gain is $1,125.
II.Brenda can deduct $3,000 of the $9,000 loss in 2018.
III.For 2018, Brenda has a net long-term capital loss of $9,000.
IV.Brenda can only deduct a capital loss of $1,500 in 2018.
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Quizplus · Accepted Answer

The Answer of Brenda sells stock she purchased in 2005 for a $7,500 gain in 2018. In August 2018, she also sells land she purchased as an investment in December 2017 at a loss of $9,000.
I.For 2018, Brenda's tax on the $7,500 gain is $1,125.
II.Brenda can deduct $3,000 of the $9,000 loss in 2018.
III.For 2018, Brenda has a net long-term capital loss of $9,000.
IV.Brenda can only deduct a capital loss of $1,500 in 2018.
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Brenda Sells Stock She Purchased in 2005 for a $7,500