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Xavier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2018. Xavier sold his shares on May 4, 2020, for fear the stock would continue its downward trend. Information relating to the sale was reported to him on Form 1099-B.   Xavier had no other capital gains or losses during the year. His only other income was from wages.   Xavier received the following Form 1099-B reporting the sale of 100 shares of stock. How should he report the sale of this property when he prepares his tax return?

Xavier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2018. Xavier sold his shares on May 4, 2020, for fear the stock would continue its downward trend. Information relating to the sale was reported to him on Form 1099-B.   Xavier had no other capital gains or losses during the year. His only other income was from wages.   Xavier received the following Form 1099-B reporting the sale of 100 shares of stock. How should he report the sale of this property when he prepares his tax return?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Xavier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2018. Xavier sold his shares on May 4, 2020, for fear the stock would continue its downward trend. Information relating to the sale was reported to him on Form 1099-B.

 

Xavier had no other capital gains or losses during the year. His only other income was from wages.

 

Xavier received the following Form 1099-B reporting the sale of 100 shares of stock. How should he report the sale of this property when he prepares his tax return?

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FreeTaxUSAⓇ -- X2021 Schedule C x Gmail art 1 - Scenario 8 с • hrblock.csod.com/Evaluations/EvalLaunch.aspx?loid-47a30875-9c0b-4ea2-bf63-40a9c98c0b29&evalLvl=5&redirect_url=%2fphnx%2fd YouTube Maps FreeTaxUSAⓇ LE - Sig... I TRADE ONLINE INVESTMENTS 5631 LA HABRA PARKWAY, STE 13 YOUR CITY, YS XXXXX (XXX)548-5734 CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country. ZIP Applicable checkbox on Form 8949 or foreign postal code, and telephone no. D PAYER'S TIN eview the following scenario. Use the information provided to answer questions about the taxpayer's 2021 return. he sale was reported to him on Form 1099-B. avier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2019. Xavier sold his sha Cavier had no other capital gains or losses during the year. His only other income was from wages. 07-2011702 Question 15 of 50. Xavier received the following Form 1099-B reporting the sale of 100 shares of stock. How should he report the sale of this property when he prepares his tax return? RECIPIENT'S name XAVIER BROWN Street address (including apt. no.) 218 ROSEMARY LANE Account number (see instructions) 1861354 CUSIP number City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX 14 State name YS Form 1099-B RECIPIENT'S TIN 34°F Raining now 201-00-1178 esc Instructions for FX FATCA fing requirement 15 State identification no. 16 State tax withhold $ (Keep for your records) ? f2 Block Academy 1d Procoods $ 6,640.00 OMB No. 1545-0715 2021 Form 1099-B 1a Description of property (Example: 100 sh. XYZ Co.) 100 SHARES ALX 1b Date acquired 02/01/2019 Gross proceeds Net proceeds 8 Profit or loss) realized in 2021 on closed contracts 1g Wash sale loss disallowed 11 Accrued market discount $ $ 2 Short-term gain or loss Long-term gain or loss Ordinary 3 If checked. proceeds from: Collectibles QOF 4 Federal income tax withheld 5 If checked, noncovered security $ 6 Reported to IRS: $ 10 Unrealized profit or loss) on open contracts-12/31/2021 ✓✔ f3 www.irs.gov/Form10998 # 2021 Instructions X N $ $ 12 if checked, basis reported 13 Bartering to IRS ✔$ f4 1c Date sold or disposed 05/04/2021 $ 10 Cost or other basis $ 8,300.00 7 checked, loss is not allowed based on amount in 1d. 9 Unrealized profit or (oss) on open contracts-12/31/2020 $ 11 Aggregate profit or (loss) on contracts f5 Proceeds From Broker and Barter Exchange Transactions 10 % Department of the Treasury - Internal Revenue Service Copy B For Recipient This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 0 f6 (133,379 unread) X ■ 4- A (C f7 liji Realize Your Pote X 1 4+ & f8 8 LO 9 144
Transcribed Image Text:FreeTaxUSAⓇ -- X2021 Schedule C x Gmail art 1 - Scenario 8 с • hrblock.csod.com/Evaluations/EvalLaunch.aspx?loid-47a30875-9c0b-4ea2-bf63-40a9c98c0b29&evalLvl=5&redirect_url=%2fphnx%2fd YouTube Maps FreeTaxUSAⓇ LE - Sig... I TRADE ONLINE INVESTMENTS 5631 LA HABRA PARKWAY, STE 13 YOUR CITY, YS XXXXX (XXX)548-5734 CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country. ZIP Applicable checkbox on Form 8949 or foreign postal code, and telephone no. D PAYER'S TIN eview the following scenario. Use the information provided to answer questions about the taxpayer's 2021 return. he sale was reported to him on Form 1099-B. avier Brown (32) is filing as a single taxpayer. During the year, he was unhappy with the performance of an investment he had made in ALX Corporation in 2019. Xavier sold his sha Cavier had no other capital gains or losses during the year. His only other income was from wages. 07-2011702 Question 15 of 50. Xavier received the following Form 1099-B reporting the sale of 100 shares of stock. How should he report the sale of this property when he prepares his tax return? RECIPIENT'S name XAVIER BROWN Street address (including apt. no.) 218 ROSEMARY LANE Account number (see instructions) 1861354 CUSIP number City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX 14 State name YS Form 1099-B RECIPIENT'S TIN 34°F Raining now 201-00-1178 esc Instructions for FX FATCA fing requirement 15 State identification no. 16 State tax withhold $ (Keep for your records) ? f2 Block Academy 1d Procoods $ 6,640.00 OMB No. 1545-0715 2021 Form 1099-B 1a Description of property (Example: 100 sh. XYZ Co.) 100 SHARES ALX 1b Date acquired 02/01/2019 Gross proceeds Net proceeds 8 Profit or loss) realized in 2021 on closed contracts 1g Wash sale loss disallowed 11 Accrued market discount $ $ 2 Short-term gain or loss Long-term gain or loss Ordinary 3 If checked. proceeds from: Collectibles QOF 4 Federal income tax withheld 5 If checked, noncovered security $ 6 Reported to IRS: $ 10 Unrealized profit or loss) on open contracts-12/31/2021 ✓✔ f3 www.irs.gov/Form10998 # 2021 Instructions X N $ $ 12 if checked, basis reported 13 Bartering to IRS ✔$ f4 1c Date sold or disposed 05/04/2021 $ 10 Cost or other basis $ 8,300.00 7 checked, loss is not allowed based on amount in 1d. 9 Unrealized profit or (oss) on open contracts-12/31/2020 $ 11 Aggregate profit or (loss) on contracts f5 Proceeds From Broker and Barter Exchange Transactions 10 % Department of the Treasury - Internal Revenue Service Copy B For Recipient This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 0 f6 (133,379 unread) X ■ 4- A (C f7 liji Realize Your Pote X 1 4+ & f8 8 LO 9 144
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