what are the income tax consequences to W?
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B9.
During 1953, H sold class A stock which had cost him $1,100, and common stock which had cost him $2,000, to his wife W for a lump sum of $1,500. At the time the stocks were purchased by W, the fair market value of class A stock was $900 and the fair market value of common stock was $600.
If W re-sold the Class A stock in 1954 for $2,500, what are the income tax consequences to W?
Need a Statutory Analysis using IRS tax code
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- Anne has 5,500 shares of Sony stock that have an adjusted basis of $35,750. She sold the 5,500 shares of stock for cash of $16,500, and she also received a piece of land as part of the proceeds. The land was valued at $22,500 and had an adjusted basis to the buyer of $13,500. What is Anne's gain or loss on the sale of 5,500 shares of Sony stock?On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized gain is $12,000. What is his basis for the new shares? His basis for the new shares is $82,000. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized loss is $_________. (Side note: 12,000 and -12,000 is wrong) What is his basis for the new shares? His basis for the new shares is $90,000.On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10, 2021, he purchases 100 shares of the same stock for $82,000. a. Assuming that Kramer's adjusted basis for the stock sold is $65,000, what is his recognized gain or loss? Kramer's recognized _______ is $_________. What is his basis for the new shares? His basis for the new shares is $________. b. Assuming that Kramer's adjusted basis for the stock sold is $89,000, what is his recognized gain or loss? Kramer's recognized _______ is $_________. What is his basis for the new shares? His basis for the new shares is $________. c. Advise Kramer on how he can avoid any negative tax consequences encountered in part (b). He could repurchase _________.
- Three years ago, Matthew purchased 250 shares of stock in T Corporation for $14,000. On December 5 of year 4, Matthew sells the 250 shares for $15,500. Part - a a. What is Matthew's capital gain or loss from the sale on December 5 of year 4? Part-bb. Assuming Matthew has no other capital gains or losses, except that on October 15 of year 5, Matthew purchases 250 shares of T Corporation stock for $15, 200. How much gain or loss from the sale on December 5 of year 4 is taxable on Matthew's year 4 tax return? What basis does Matthew take in the stock purchased on October 15 of year 5? ***This question already posted and got correct answer. Don't answer this questionSheila’s mother purchased 100 shares of Apple stock in 1992. The original sale price was $26 per share for a total value of $2,600. She kept those 100 stocks until her death in June 2022. By the time of her death, the Apple stock value is $190 per share for a total value of $19,000. Sheila will not owe taxes for capital gains on the $16,400 increase in value. Why do you think the gains and losses should be separated from sheila's other gains and losses?Chaz recently received 2,190 shares of restricted stock from his employer, Fahrner Corporation, when the share price was $11 per share. Char's restricted shares vested three years later when the market price was $15. Chaz held the shares for a little more than a year and sold them when the market price was $13. What is the amount of Chaz's gain or loss on the sale? Multiple Choice $2190 loss so $4.380 gein $4.380 loss
- Erin purchased stock in JKL Corporation several years ago for $8,750. In the current year, she sold the same stock for $12,800. She paid a $200 sales commission to her stockbroker. 1. What is Erin's amount realized?$fill in the blank 1 2. What is Erin's adjusted basis?$fill in the blank 2 3. What is Erin's realized gain or loss?$fill in the blank 3 gain 4. What is Erin's recognized gain or loss?$fill in the blank 5 gain 5. How is the gain or loss treated for tax purposes (if any)? Because the stock has been held for more than a year, there is . It will be taxed at , depending on the taxpayer's income.Matt inherits 125 shares of Chess Corporation stock from his father. The stock cost his father $7,000 and had a $11,000 FMV on the date of his father's death in 2018. The alternate valuation date was not elected. If Matt sells the Chess Corporation stock for $12,400, what would be his taxable gain on the sale? (Taxable gain = Proceeds of sale - Tax basis of stock sold) Matt's taxable gain on the sale of Chess stock isOn September 6, 2016, Andrew, who is married, purchased Allstar Corporation stock for $220,000 from the corporation. The Allstar Corporation’s stock qualified as Section 1244 stock. On November 20, 2019, Andrew sold the Allstar stock for $100,000. How should Andrew report his realized gain or loss on the sale of the Allstar Corporation stock? Question 2 options: a) Andrew realized a $120,000 long term capital loss. b) Andrew realized a $50,000 Section 1244 ordinary loss and a $70,000 long term capital loss. c) Andrew realized a $100,000 Section 1244 ordinary loss and a $20,000 long term capital loss. d) Andrew realized a $120,000 Section 1244 ordinary loss.
- Stan owns 1,500 shares of Red Corporation common stock which he purchased in 2011 for $30,000. On 3-30-14 he purchased an additional 500 shares for $7,000. On 4-20-14 he sells 1,000 of the original shares for $11,000. On 5-15-14 he purchases 200 shares of Red stock for $4,000. What is Stan's recognized loss as a result of the sale of the stock and what is the basis of the shares purchased on 3-30-14, respectively ? a. $6,300 loss ; $5,800 basis b. $5,700 loss ; $17,300 basis c. $2,700 loss ; $5,800 basis d. $2,700 loss ; $11,500 basis e. None of the answers provided is correctMark is entitled to a worthless stock deduction after the company delcared bankrupty and eventually liquidated. Mark paid $40 per share for his 500 shares. Trading was halted temporarily but it resumed. The value of Mark's stock never fell below $7 per share and he still owns it. If Mark's stock lost some value but never became completely worthless what would have been the FIT result?89. Terry purchased stock in Yippee Corporation for $10,000 in May 1985. Hel bought stock in Zapper Corporation for $20,000 in June 1988. The Yippee Corporation stock is currently worth $90,000, and the Zapper Corporation stock is worth $15,000. Terry is in very poor health, and he comes to you for tax advice. What advice would you give him regarding his stock holdings? Is there any additional information you would like to ask him for before giving him tax advice?
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