ACC 547 Week 2 Problem Set I5-67, I5-61

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ACC 547 Week 2 Problem Set I5-67, I5-61 To
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eek-2-Problem-Set-I5-67,-I5-61For Case Study
I5-67 As a political consultant for an aspiring
politician, you have been hired to evaluate
thefollowing statements that pertain to capital
gains and losses. Evaluate the statement
andprovide at least a one-paragraph explanation
of each statement. As you prepare youranswer,
consider the fact that the aspiring politician
does not have much knowledgeabout taxation.   
 a.The tax on capital gains is considered a
voluntary tax.     b.On October 22, 1986, the Tax
Reform Act of 1986 was passed, which eliminated
the60 of net capital gain deduction (i.e., an
individual taxpayer with 10,000 of netcapital
gain was entitled to a 6,000 deduction when
computing AGI) before January1, 1987. Many state
governments enjoyed a substantial increase in
1986 tax revenue.     c.High-income taxpayers
receive the most benefit from preferential
treatment for capitalgains.
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Comprehensive Problem I5-61 Betty incurs the
following transactions during the current year.
Without considering thetransactions, her 2006 AGI
is 40,000. Analyze the transactions and answer
the follow-ing questions On March 10, 2006, she
sells a painting for 2,000. Betty is the artist,
and she com-pleted the painting in 2001. Her
basis for the painting is 50. On June 18, 2006,
she receives 28,500 from the sale of stock
purchased by her unclein 1996 for 10,000, which
she inherits on February 20, 2006, as a result of
heruncles death. The stocks FMV on that date is
30,000. On July 30, 2006, she sells land for
25,000 that was received as a gift from
herbrother on April 8, 2006, when the lands FMV
was 30,000. Her brother purchasedthe land for
43,000 on October 12, 1998. No gift tax was
paid.     a.What is her NSTCL or NSTCG?   
 b.What is her NLTCL or NLTCG?     c.What is the
effect of capital gains and losses on her
AGI?d.What is her capital loss carryforward to
2007?  For more details www.assignmentcloud.com