Elena gives stock to Jake that has a tax basis of $4,500. At the time of the gift, the stock is worth only $3,800. Jake later sells the stock for $5,000. What amount of gain must Jake report on the sale?
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Elena gives stock to Jake that has a tax basis of $4,500. At the time of the gift, the stock is worth only $3,800. Jake later sells the stock for $5,000. What amount of gain must Jake report on the sale?
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- Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019, she sells the land for 38,000. Chelseas taxable income without considering the land sale is 100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?Eva owns securities with a tax basis of $5,700. She gives them to Smith when they are worth only $4,200. Smith held these securities until they were worth $6,800 and sold them. What amount of gain does he have to report on this sale?Eva owns securities with a tax basis of $5,700. She gives them to Smith when they are worth only $4,200. Smith held these securities until they were worth $6,800 and sold them. What amount of gain does he have to report on this sale? a) $650 b) $400 c) $900 d) $1,100
- what is the correct option ? general accounting questionAccounting. Eva owns securities with a tax basis ofAuntie sold some stock she purchased several years ago for $10,000 to Niece for $6,000. I. If this is Auntie's only stock transaction, she can deduct only $3,000 of the loss. II. If Niece sells the stock for $10,000, her taxable gain is $4,000. What is correct?
- 2. Six years ago, Alvin loaned his prospective brother-in-law, Bruno, $20,000. The money was used to help Bruno pay for the wedding to Alvin's sister Kitty. Shortly after the wedding, it was discovered that Bruno was already married to someone else. Before Bruno could be indicted for bigamy, he disappeared and has not been heard from since. In the current year, Alvin dies still holding onto Bruno's note. For tax purposes, what do you suggest as to the handling of Bruno's note?Marilyn owns land that she acquired three years ago as an investment for $250,000. She sells the land two years later for $300,000. How does the "recovery of capital doctrine" apply in computing Marylyn's gain or loss from the sales transaction? What is the correlation between "adjusted basis" and the "recovery of capital doctrine? Give an example how this doctrine prevents income from being taxes more than once.How much is reggies amount realized?
- Just prior to a major medical procedure, Cody gives his son, Liam, stock in Robin corporation (fair market value of $1,254,600 and basis of $1,756,440) at the time of the gift, Cody held some unused capital losses. The surgery was unsuccessful, and after Cody's death, Liam sells the stock for $1,932,084 A. What is the income tax result for Liam? B. What if the gift had not been made and the stock passes to Liam as a bequest from Cody?Jennifer recently gave a check for $30,000 and securities with a fair market value of $200,000 to her former husband pursuant to a divorce. The $30,000 represents alimony and the securities were transferred pursuant to the property settlement. The property settlement is nontaxable to her former husband. What tax issues should Jennifer consider?Stock owned by a brother is sold to his sister. The brother's adjusted basis of the stock is $22,000. He sells the stock for $19,000. The sister sells the stock to an unrelated party for $17,000. What is the gain recognized by the sister? a. Her basis is $17,000. The price she paid for it. She sold it for $19,000. She recognizes a gain of $2,000. b. Because of the situation, she only has a $1,000 recognized loss. c. She takes the brother's basis in the stock and recognizes the $1,000 gain. d. None of the answers provided are correct.
