H sold shares of a public company worth $90,000 to a Canadian corporation owned by H and her spouse. The shares had an adjusted cost base of $130,000 at the time of the sale. The corporation continues to own the shares. What is the amount of H's allowable capital loss? Note: Do not place a minus sign in front of the amount.

H sold shares of a public company worth $90,000 to a Canadian corporation owned by H and her spouse. The shares had an adjusted cost base of $130,000 at the time of the sale. The corporation continues to own the shares. What is the amount of H's allowable capital loss? Note: Do not place a minus sign in front of the amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jackson, an individual, is a shareholder in Cadduceus Corp., a C corporation with $40,000 in accumulated earnings and profits. Cadduceus Corp. redeems some of its stock from Jackson for $200,000 as part of a qualifying partial liquidation. Jackson's adjusted basis in the stock at the time of redemption was $50,000. For tax purposes, how will Jackson report the effects of this redemption of stock? As a $40,000 dividend only. As a $150,000 capital gain. As a $40,000 dividend and $110,000 capital gain. As a $10,000 capital loss.
Ganda sold 2,000 shares of a domestic corporation directly to a buyer Vice at P180 per share. The shares were 3 purchased 3 years ago for P105 per share. How much is the capital gains tax of the above transactions. Select the correct response: 54,000 90,000 22,500 Zero
Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Adjusted Tax FMV Basis $ 114,375 266,875 $ 381,250 $ 30,500 122,000 $ 152,500 Building Land Total To equalize the exchange, Wizard Corporation paid Hermione $76,250 in addition to her stock. Assume Hermione's adjusted tax basis in the land was $381,250. i. What adjusted tax basis does Wizard Corporation take in the land and building received from Hermione? Land Building Adjusted tax basis
Which of the following is true with respect to the related party rules? a.A disallowed loss on a related party transaction can be used to offset any future gain when the property is sold to an unrelated party. b.Bill sells stock to his sister for a $3,000 loss. Bill can deduct the loss on his tax return. c.A taxpayer's uncle is a related party for purposes of Section 267. d.Under the constructive ownership rules of Section 267, a shareholder owns 10 percent of the stock owned by a corporation in which he or she is a shareholder. e.None of these choices are correct.
Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.
Moran owns a building he bought during year O for $227,000. He sold the building in year 6. During the time he held the building, he depreciated it by $40,250. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) c. Moran received $182,000. Description Amount Total Gain/(Loss) Recognized Remaining $1231 gain (loss)
In the current year, Pearl Corporation has $30,000 of current and accumulated E&P. On June 3, Pearl Corporation distributes a parcel of land (a capital asset) worth $120,000 to Betty, a shareholder. The land has a $70,000 adjusted basis to Pearl Corporation and is subject to a $16,000 mortgage, which Betty assumes. Betty’s basis in her Pearl Corporation stock is $10,000 (Ignore any tax effects on E&P). What is Betty's holding period in the land?
Moran owns a building he bought during year 0 for $223,000. He sold the building in year 6. During the time he held the building, he depreciated it by $53,500. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) Problem 11-44 Part-a (Algo) a. Moran received $200,000. Description Amount Total Gain/(Loss) Recognized Unrecaptured §1250 gain (and §1231 gain) Remaining §1231 gain (loss)
Townsend, the sole shareholder of Pruett Corporation, has a $545,600 basis in his stock. He exchanges all of his Pruett stock for $682,000 of Rogers voting common stock plus land with a fair market value of $136,400 and basis of $34,100. Pruett distributed the land to Townsend. This exchange meets all Code requirements. If an amount is zero or there is no gain or loss, enter "0". a. What is Townsend's recognized gain/loss from the reorganization? Townsend recognizes a gain of $_____________ b. What is the gain/loss recognized by Pruett Corporation and Rogers Corporation on the reorganization?Rogers Corporation recognizes a gain of $___________ and Pruett Corporation recognizes no gain or loss of $0 c. What is Townsend's basis in the Rogers stock and the land received?The basis in the Rogers stock is $___________ and the basis in the land is __________
An individual taxpayer sells stock with a basis of \$ \\$ 11,000 \$ to her brother for \$ \\$ 7,600 \$. The value of the stock 30 days prior to the sale is \$ \\$ 9,600 \$. The taxpayer has no other capital asset transactions during the year. What amount, if any, can the taxpayer deduct on her tax return for the loss sustained? \$ \\$ 0 \$ \$ \\$ 1,400 \$ \$ \\$ 3,000 \$ \$ \\$ 3,400 \$