In 2019, Tom sold Sears stock for $10,000, which he had bought for $13,000 four years earlier. He also sold Ford Motor Company bonds for $35,000, which he had purchased for $30,000 two months earlier. Additionally, Tom sold Home Depot stock for $2,500 that he had acquired two years prior for $1,000. Calculate Tom's net gain or loss and indicate whether it is a short-term or long-term gain or loss. Calculations: For Sears stock: Purchase price: $13,000 Sale price: $10,000 Loss: $13,000 - $10,000 = $3,000 (long-term, since held for more than one year) For Ford Motor Company bonds: Purchase price: $30,000 Sale price: $35,000 Gain: $35,000 - $30,000 = $5,000 (short-term, since held for less than one year) For Home Depot stock: Purchase price: $1,000 Sale price: $2,500 Gain: $2,500 - $1,000 = $1,500 (long-term, since held for more than one year) Net gain or loss: ($5,000 gain from Ford bonds) + ($1,500 gain from Home Depot stock) - ($3,000 loss from Sears stock) = $3,500 net long-term gain.

To calculate Tom's net gain or loss from these transactions, we need to compare the sale price against the purchase price for each asset. We also need to determine whether each gain or loss is short-term or long-term, which depends on the holding period of each asset. In the United States, assets held for more than a year are typically considered long-term, whereas assets held for a year or less are considered short-term.

1. Sears stock: Tom sold it for $10,000 but bought it for $13,000. Loss = Purchase Price - Sale Price Loss from Sears stock = $13,000 - $10,000 = $3,000 Since he held the stock for four years, this is a long-term capital loss.

2. Ford Motor Company bonds: Tom sold them for $35,000 but bought them for $30,000. Gain = Sale Price - Purchase Price Gain from Ford bonds = $35,000 - $30,000 = $5,000 Since he held the bonds for two months, this is a short-term capital gain.

3. Home Depot stock: Tom sold it for $2,500 but bought it for $1,000. Gain from Home Depot stock = $2,500 - $1,000 = $1,500 Since he held the stock for two years, this is a long-term capital gain.

Now, to calculate the net gain or loss, we sum all gains and losses: Net gain or loss = Loss from Sears stock + Gain from Ford bonds + Gain from Home Depot stock Net gain or loss = (-$3,000) + $5,000 + $1,500 Net gain or loss = $3,500

Tom's net result is a gain of $3,500 overall. This combines a long-term capital loss, a short-term capital gain, and a long-term capital gain. However, for tax purposes, short-term gains and losses are netted against each other separately from long-term gains and losses.