Hey everyone, I'm doing a final review for my exam on Tuesday and I'm having a slight issue with one of the Becker simulations. I can't tell if I'm missing something obvious or if the solution is inconsistent.
R5 – Simulation 2 Part 4
-The simulation is asking for basis, realized G/L, and the amount to be reported on tax return.
#22: Taxpayer sold land she owned for 4 years with a basis of $60,000 to her brother for $40,000. The brother sold the land for $25,000 6 months later.
-Solution for what you report on the return says “($15,000) total (3,000) maximum loss allowable.”
-When I entered the (3,000) it marks it incorrect and accepts the full (15,000) as the answer
#23: Individual taxpayer sold stock purchased 4 years ago ($10,000 basis) for $2,000. She sold stock purchased 4 months prior (basis $1,000) for $5,000.
-Solution for what to report on the return says ” (3,000) maximum allowable capital loss deduction. (1,000) carryforward.
Why is it for #22 you report the full (15,000) even though the solution states only (3,000) is allowed, yet for #23 only the (3,000) allowed loss is the correct answer?
Sorry if I'm missing something completely obvious, this is my 3rd section in 4 months I think I am burnt out, but it's my last one so I'm trying to stay strong!
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