标题: Using capital loss carryforwards to offset capital gain tax [打印本页] 作者: wangdaming 时间: 2013-8-26 18:24 标题: Using capital loss carryforwards to offset capital gain tax
Level III Curriculum Volume 2
page 369
Example 8
A question about using the capital loss carrryforwards to offset capital gains tax. Lee has $1.5m of capital loss carryforwards.
And he can get $5m pretax through sale and leaseback of the warehouse. So the total capital gain is (5-1.5)=$3.5m, and the total capital gain tax is (5-1.5)*25%=$0.875m, then the net cash from the sale and leaseback is 5-0.875=$4.125m, not $5m.
But in the book, it said the capital gains tax of $1.25m in the sale and leaseback is fully offsetted? is it wrong?
