1) Stock in A Corp. that he purchased on July 14, Year 1, for $40,000. 2) Stock in B Corp. that he purchased on July 11, Year 2, for $97,000. 3) Stock in C Corp. that he purchased on December 10, Year 10, for $15,000.
In Year 11, Gearty, a single taxpayer, sold the following stocks:
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1) |
Stock in A Corp. that he purchased on July 14, Year 1, for $40,000. |
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2) |
Stock in B Corp. that he purchased on July 11, Year 2, for $97,000. |
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3) |
Stock in C Corp. that he purchased on December 10, Year 10, for $15,000. |
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4) |
Stock that Gearty inherited from his mother, who died on January 5, Year 11. Her basis was $10,000 and the fair market value at her death was $27,000. She had acquired the stock on January 3, Year 11. The alternative valuation date was not elected on her estate. |
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5) |
Stock that Gearty received as a gift in Year 5. The donor’s basis was $25,000 and the fair market value at the date of the gift was $20,000. The donor had owned the stock for several years. |
- In column B, select from the option list to indicate whether the gain or loss from the sale is "short-term" or "long-term."
- In column C, select from the option list to indicate whether the sale results in a "gain" or a "loss."
- In column D, enter the amount of the gain or loss.
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A |
B |
C |
D |
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1 |
Long-term or Short-term |
Gain or Loss |
Amount |
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2 |
The inherited stock was sold on March 10 for $28,000. |
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3 |
The B Corp. stock was sold on May 12 for $15,000. |
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4 |
The C Corp. stock was sold on August 27 for $25,000. |
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5 |
The A Corp. stock was sold on September 22 for $100,000. |
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6 |
The gifted stock was sold on October 5 for $26,000. |
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7 |
Gearty’s total gain or loss for stock disposed of in Year 11. |
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8 |
In Year 12, Gearty had two additional capital transactions. The first resulted in a short-term |
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