Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Ostrich also has taxable income from other sources of $1 million. Prior years' transactions included the following: $\begin{array}{lr}
2015 \text { net short-term capital gains } & \$ 20,000 \
2016 \text { net long-term capital gains } & 15,000 \
2017 \text { net short-term capital gains } & 25,000 \
2018 \text { net long-term capital gains } & 5,000
\end{array}$
a. How are the capital gains and losses treated on Ostrich's 2019 tax return?
b. Determine the amount of the 2019 net capital loss that is carried back to each of the previous years.
c. Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d. If Ostrich were a proprietorship, how would Ellen, the owner, report these transactions on her 2019 tax return?

Question

Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Ostrich also has taxable income from other sources of $1 million. Prior years' transactions included the following: $\begin{array}{lr}
2015 \text { net short-term capital gains } & \$ 20,000 \
2016 \text { net long-term capital gains } & 15,000 \
2017 \text { net short-term capital gains } & 25,000 \
2018 \text { net long-term capital gains } & 5,000
\end{array}$ 
a. How are the capital gains and losses treated on Ostrich's 2019 tax return?
b. Determine the amount of the 2019 net capital loss that is carried back to each of the previous years.
c. Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d. If Ostrich were a proprietorship, how would Ellen, the owner, report these transactions on her 2019 tax return?

Quizplus · Accepted Answer

The Answer of Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2019. Ostrich also has taxable income from other sources of $1 million. Prior years' transactions included the following: $\begin{array}{lr}
2015 \text { net short-term capital gains } & \$ 20,000 \
2016 \text { net long-term capital gains } & 15,000 \
2017 \text { net short-term capital gains } & 25,000 \
2018 \text { net long-term capital gains } & 5,000
\end{array}$ 
a. How are the capital gains and losses treated on Ostrich's 2019 tax return?
b. Determine the amount of the 2019 net capital loss that is carried back to each of the previous years.
c. Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d. If Ostrich were a proprietorship, how would Ellen, the owner, report these transactions on her 2019 tax return?

Ostrich, a C Corporation, Has a Net Short-Term Capital Gain