Question

During the year, Ophelia recorded the following transactions involving capital assets.
Gain on the sale of unimproved land (held as an investment for 3 years) $3,000
Loss on the sale of a camper (purchased 2 years ago and used for family vacations (5,000)
Loss on the sale of ADM stock (purchased 9 months ago as an investment (1,000)
Gain on the sale of a fishing boat and trailer (acquired 11 months ago at an auction and used for recreational purposes) 2,000
a) If Ophelia is in the 35% bracket,

Answer 1

b) If Ophelia is in the 15% bracket

Answer 2

I only understand Euros and I hate taxes.

Why am I reading this.....

Answer 3

then why bother responding

Answer 4

Well, no-one else was...:-)

Answer 5

If you can tell me what the cutoffs are for US tax rates, I might make a serious attempt.

Answer 6

35%

Answer 7

And you amortize gains/losses annual basis?

Answer 8

i dont know any of that, i just started this class monday

Answer 9

What does it ask you to do?

Answer 10

If the US system is like over here, there is not enough info in the question to answer it.

Like, a capital item, you can offset some percentage of loss against chargeable gains.

Also the question seems incomplete, offers two choices, 35% or 15% without mentioning any allowances, whether those are capital gains tax rates or income rates or what....

Just a raw reaction, I would want to be paying the least tax I could with those kind of losses.