Three years ago, Adrian purchased 100 shares of stock in X Corporation for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000.   Assuming Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 100 shares of X Corporation stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5? What is the deductible loss?   What is the tax basis?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
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Three years ago, Adrian purchased 100 shares of stock in X Corporation for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000.  

Assuming Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 100 shares of X Corporation stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?

What is the deductible loss?   What is the tax basis? 

 

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