- 11 - Less adjusted basis: 484,080 Net long-term capital loss: (164,254) The basis amount reported by the Johnstons on their second amended 1990 return was their basis in all of their Burien Nissan stock. The Johnstons applied a portion of the 1990 long-term capital loss against 1990 income and carried forward the remainder, applying it against income earned in 1991, 1992, and 1993. The Johnstons absorbed the entire remaining capital loss carryforward on their 1993 income tax return. They did not have any capital loss to carry forward to 1994. The Johnstons filed their 1994 Federal income tax return on or about April 15, 1995. On Schedule D of their 1994 income tax return, the Johnstons reported selling Burien Nissan stock as follows: Total sales price: $43,818 Less adjusted basis: 18246,881 Net long-term capital loss: (203,063) The Johnstons had no basis in the shares of Burien Nissan they sold in 1994. The Johnstons already had applied their 17(...continued) We note that a $1 difference exists between the total proceeds amount reported here and the amount reported in the Johnstons’ original 1990 Federal income tax return. 18On their 1994 Federal income tax return, the Johnstons computed their basis by subtracting the basis reported on their original 1990 income tax return of $237,199 from their basis in the 96,000 shares held on May 24, 1990 ($484,080). The Johnstons disregarded the second amended 1990 return filed on Apr. 15, 1994.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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