Sheila purchased a $250000, 365 day T Bill with a quoted yield of 4.55%. She sold the TBill 180 days later, when interest rates were 3.85%. Based on the street method, what tax implications will Sheila incur due to the sale of her T Bill? a) Sheila must report interest income of $5244.51 and a capital gain of $ 850.40 b) Sheila's taxable income will increase by $ 3047.46 c) Sheila muat report interest income of $ 6094.91 d) Sheila will have interest income of $5244.51 and an allowable capital loss of $425.20

Sheila purchased a $250000, 365 day T Bill with a quoted yield of 4.55%. She sold the TBill 180 days later, when interest rates were 3.85%. Based on the street method, what tax implications will Sheila incur due to the sale of her T Bill? a) Sheila must report interest income of $5244.51 and a capital gain of $ 850.40 b) Sheila's taxable income will increase by $ 3047.46 c) Sheila muat report interest income of $ 6094.91 d) Sheila will have interest income of $5244.51 and an allowable capital loss of $425.20

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 69P

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