2023 Advanced Exam - Advanced Scenario 8: Julia Oakley - Question 1 of 7. Interview Notes • Julia is a data entry clerk, age 26, and single. • Julia has investment income and a consolidated broker’s statement. • Julia is self-employed delivering groceries for Quick Market on the weekends. She received a Form 1099-NEC and a Form 1099-K. She received additional cash payments of $535. • Julia uses the cash method of accounting. She uses business code 492000. • Julia provided a statement from the grocery delivery service indicating the fees paid for the year. These fees are considered ordinary and necessary for the grocery delivery business: o $150 for insulated box rental o $50 for vehicle safety inspection (required by Quick Market) o $600 for Quick Market fees • Julia also kept receipts for the following out-of-pocket expenses: o $80 for business parking o $300 for speeding ticket o $160 for Julia's lunches • Julia’s record keeping application shows she has driven a total of 2,500 miles during and between deliveries. She also drove 1,500 miles between her home and the first and last delivery of each day. o She placed her only vehicle, an SUV, in service on 3/15/2020. The total mileage on her SUV for tax year 2023 was 12,000 miles. Of that, 8,000 miles were personal miles. Julia will take the standard business mileage rate. • Julia is paying off her student loan from 2017, when she completed her undergraduate degree. • Julia is working towards her Master of Education degree to start a new career as an Associate Professor. She took a few college courses this year at an accredited college. • Julia took an early distribution of $3,000 from her IRA in April. She used $2,400 of the IRA distribution to pay her educational expenses. • If Julia has a refund, she would like it deposited into her checking account. 23. Julia's net long term capital gain reported on Schedule D is $1,700. a. True b. False

To determine whether the statement about Julia's net long-term capital gain being $1,700 is true or false, we would need to review her consolidated broker's statement, which would provide details on her investment transactions, including the sale of stocks, bonds, or other securities. The net long-term capital gain is calculated by subtracting the cost basis (the original purchase price plus any adjustments) of the investment from the sales price, provided the asset was held for more than one year. If the asset was held for one year or less, it would be considered a short-term capital gain or loss. Since the scenario provided does not include specific details about Julia's investment transactions, we cannot confirm the accuracy of the $1,700 figure. Therefore, without additional information, we cannot determine whether the statement is true or false. For the purpose of this scenario, if the exam question states that Julia's net long-term capital gain reported on Schedule D is $1,700, and you are expected to trust the information given in the question, then the answer would be: a. True However, in a real-world situation, you would need to review the actual financial documents to verify this information.

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