The Smiths have a long-term capital loss carryover of $10,000 from 2010.

On May 9, 2007, David's uncle, Joe, gave him the family antique gun collection. Based on family records and educated estimates, the collection had an adjusted basis to Joe of $4,200 and was worth $13,000 on the date of the gift. Because Amy abhors guns, David has been under heavy pressure to get rid of the collection. After Joe died in early 2011, David donated the collection to the Colt Museum (a qualified charity). The transfer was made on December 5, 2011; at that time, several qualified appraisers valued the collection at $16,000. The museum plans to add the collection to the other firearms it exhibits to visitors.

While walking the dog in late December 2010, Amy was hit by an out-of-control delivery truck. The mishap sent Amy to the hospital for several days of observation and medical evaluation. Aside from severe bruises, she suffered no permanent injury. Once apprehended, the driver of the truck was ticketed for DUI. The owner of the truck, a local distributor for a national brewery, was concerned about the adverse publicity that would result if Amy filed a lawsuit. Consequently, it paid all of her medical expenses and offered her a settlement if she would sign a release. Under the settlement, Amy would receive $134,000 - $8,000 for loss of income and $126,000 for personal injury. On January 31, 2011, Amy signed the release and was immediately paid $134,000.