Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. Item Date Acquired Date Sold Cost Sales Price
Blue stock (10 shares) 11/10/15 03/12/16 $3,000 $6,000
Purple stock (100 shares) 12/13/14 05/23/16 36,000 32,000
Beige stock (50 shares) 12/14/11 07/14/16 13,000 14,500
Red stock (100 shares) 06/29/15 05/18/16 26,000 27,000
Black stock (100 shares) 05/15/15 10/18/16 67,000 67,800
Gray stock (100 shares) 04/23/14 10/18/16 89,000 $88,200
a. Determine the nature and amount of the gain or loss for each of the stock transactions
Item Type of Gain or Loss Amount
Blue stock
Purple stock
Beige stock
Red stock
Black stock
Gray stock
b. Phil and Susan have a net short-term capital of $ and a net long-term capital of
$. Consequently, there is an overall net of $.
Phil's and Susan's AGI is $.