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    infamous54's Avatar
    infamous54 Posts: 1, Reputation: 1
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    #1

    Apr 15, 2008, 02:17 PM
    Capital losses
    In 2007, a business sells a capital asset, which it had held for two years, at a loss of $15,000. How much of the capital loss may be deducted in 2007, and how much is carried back or forward under the following circumstances?

    a) The business was a sole proprietorship owned by Joe. Joe had a short-term capital gain of $3,000 in 2007 and a long-term capital gaine of $2,000. Joe had ordinary net income from the proprietorship of $60,000.

    b) The business is incorporated. The corporation had a short-term capital gain of $3,000 and a long-term capital gain of $2,000. Its ordinary net income from the business was $60,000.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 16, 2008, 10:55 AM
    This looks remarkably like a college-level business course assignment.

    For this reason, I will pass on answering because I do NOT believe in giving students answers to questions they should be studying to answer themselves.
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