Problem -
1. Terry Trooper, a single taxpayer, had the following transactions during 2017:Sold 60 shares of Troy Corporation common stock on March 22, 2017, for $660. The stock was purchased on January 31, 2017, for $7 per share.
2. Sold family gemstones held for three years for $10,000. The gemstones had a cost and basis of $7,800.
3. Three-year note from his brother became worthless. The note was $750.
4. Stock in Tyler Corporation became worthless on December 20, 2017, when the corporation filed for bankruptcy. The stock was purchased for $250 on June 30, 2017.
5. Received $200 from a renter to cancel a lease held on rental property.
What is Terry's taxable income if his only other income was salary, net rental income and interest totaling $40,000? He has itemized deductions of $7,000 and no dependents.
(Smith)
Smith, Ephraim, Philip Harmelink, James Hasselback. Federal Taxation: Comprehensive Topics. CCH Inc., 2017-04-03. VitalBook file.
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