Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 15DQ
a.
To determine
Comment on the given transaction.
b.
To determine
Comment on the given transaction.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
H6.
Dennis sells short 125 shares of ARC stock at $104 per share on January 15, 2021. He buys 250 shares of ARC stock on April 1, 2021, at $130 per share. On May 2, 2021, he closes the short sale by delivering 125 of the shares purchased on April 1.
a. What are the amount and nature of the loss upon closing the short sale?
Dennis has short-term capital loss in the amount of $fill in the blank .
b. When does the holding period for the remaining shares begin?
The holding period for the remaining shares begins on May 2.
c. If Dennis sells (at $143 per share) the remaining 125 shares on January 20, 2022, what will be the nature of his gain or loss?
Dennis has short-term capital gain in the amount of $fill in the blank .
Dennis sells short 475 shares of ARC stock at $112 per share on January 15, 2019. He buys 950 shares of ARC stock on April 1, 2019, at
$140 per share. On May 2, 2019, Dennis closes the short sale by delivering 475 of the shares purchased on April 1.
a. What are the amount and nature of the loss upon closing the short sale?
Dennis has
loss in the amount of $
b. When does the holding period for the remaining shares begin?
The holding period for the remaining shares begins on
c. If Dennis sells (at $154 per share) the remaining 475 shares on January 20, 2020, what will be the nature of his gain or loss?
Dennis has
in the amount of $
Chapter 14 Solutions
Individual Income Taxes
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - LO.1 Taylor is negotiating to buy some land. Under...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - LO.4 Marilyn owns land that she acquired three...Ch. 14 - Prob. 15DQCh. 14 - Prob. 16CECh. 14 - Prob. 17CECh. 14 - Prob. 18CECh. 14 - Prob. 19CECh. 14 - Prob. 20CECh. 14 - Heather owns 400 shares of Diego Corporation...Ch. 14 - Prob. 22CECh. 14 - Prob. 23CECh. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - Prob. 27CECh. 14 - LO.1 Anne sold her home for 290,000 in 2019....Ch. 14 - Prob. 29PCh. 14 - Prob. 30PCh. 14 - Nissa owns a building (adjusted basis of 600,000...Ch. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Yancys personal residence is condemned as part of...Ch. 14 - Prob. 37PCh. 14 - Prob. 38PCh. 14 - Kevin purchases 1,000 shares of Bluebird...Ch. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Nicky receives a car from Sam as a gift. Sam paid...Ch. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Helene and Pauline are twin sisters who live in...Ch. 14 - Prob. 50PCh. 14 - Prob. 51PCh. 14 - Prob. 52PCh. 14 - Prob. 53PCh. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - Prob. 56PCh. 14 - Alton Newman, age 67, is married and files a joint...Ch. 14 - John Benson, age 40, is single. His Social...Ch. 14 - Prob. 1RPCh. 14 - Prob. 2RPCh. 14 - Prob. 5RPCh. 14 - Prob. 1CPACh. 14 - Prob. 2CPACh. 14 - Prob. 3CPACh. 14 - Prob. 4CPACh. 14 - Prob. 5CPACh. 14 - Prob. 6CPACh. 14 - Prob. 7CPACh. 14 - Prob. 8CPACh. 14 - Prob. 9CPA
Knowledge Booster
Similar questions
- Jayne purchased General Motors stock 6 years ago for $20,000. In the current year, she sells the stock for $35,000. What is Jayne's gain or loss? $15,000 long-term gain $15,000 short-term gain $15,000 ordinary loss $15,000 extraordinary gain No gain or loss is recognized on this transaction.arrow_forwardDennis sells short 100 shares of ARC stock at 20 per share on January 15, 2019. He buys 200 shares of ARC stock on April 1, 2019, at 25 per share. On May 2, 2019, he closes the short sale by delivering 100 of the shares purchased on April 1. a. What are the amount and nature of Denniss loss upon closing the short sale? b. When does the holding period for the remaining 100 shares begin? c. If Dennis sells (at 27 per share) the remaining 100 shares on January 20, 2020, what will be the nature of his gain or loss?arrow_forwardConner purchased 300 shares of Zinco stock for 30,000 in year 1. On May 23, year 6, Conner sold all the stock to his daughter Alice for 20,000, its then fair market value. Conner realized no other gain or loss during year 6. On July 26, year 6, Alice sold the 300 shares of Zinco for 25,000. What was Alices recognized gain or loss on her sale? a. 0 b. 5,000 long-term gain c. 5,000 short-term loss d. 5,000 long-term lossarrow_forward
- Ray, single, purchased corp. stock 12/27/2021 for $5,000. It became worthless 10/27/22. Additionally, he purchased §1244 stock 3 years ago for $200,000, but sold it this year for $50,000. How much ordinary loss and capital loss must he recognize? Insert the following answers in the blanks in this order. (please include a number 0-200000) in each blank. 1. Amount of short-term capital loss 2. Amount of long-term capital loss 3. Amount of ordinary loss 5000 100000 50000 A/ Parrow_forwardbhavesharrow_forwardGabe sold 200 shares of VTS stock at a loss on September 21, 2022. Under the was! the loss if he purchased, or repurchased, the same number of shares on which of th August 18, 2022. August 31, 2022. October 28, 2022. O November 1, 2022.arrow_forward
- 0 Required information [The following information applies to the questions displayed below] Three years ago, Adrian purchased 105 shares of stock in X Corporation for $14,490. On December 30 of year 4. Adrian sells the 105 shares for $11,340. Note: Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign. b. Assuming Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 105 shares of X Corporation stock for $11.340. 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? Deductible loss Basisarrow_forwardPlease answer the following question: Facts: Matthew sold 200 shares of Xerox stock on December 23, Year 1. The stock had a basis of $4,000 and was sold for $2,000, resulting in a $2,000 loss realized. On January 10 of Year 2, Matthew caused his IRA to purchase 400 shares of Xerox stock for $4,000. Issue: Assuming there are available capital gains, may Matthew deduct the $2,000 capital loss on the sale of his Xerox stock on his Year 1 tax return? 1) Give a simple, nontechnical 1 sentence answer to the question posed. 2) What is (are) the Code section(s) at issue? 3) Are any Treasury Regulations relevant? 4) List the case/ruling authority on which you relied to arrive at your answer (please provide the name of any case, not just a citation). 5) Provide a step-by-step description of how you arrived at your answer and located the primary sources that you used to support it (include a discussion of the case law or Ruling authority on which you relied)arrow_forwardHw.142.arrow_forward
- Juan owned 200 shares of Circle Corporation stock (adjusted basis of $30,000). He sold 100 shares for $12,000. Twenty days later he purchased 100 shares of the same stock for $8,500. What is Juan's realized and recognized loss? What is his basis in the newly acquired shares? If an amount is zero, enter "0". Juan records a realized loss of $_____ of which $_____ is recognized. His basis in the newly acquired stock is $_____.arrow_forwardI need Accounting question answerarrow_forwardAssume, for purposes of this question only, that Susan acquired 2,000 shares of Hawk Corporation stock for $80,000 on March 31, 2014. On March 1, 2023, she sells 125 shares for $3,750. On March 22, 2023, she purchases 135 shares of Hawk Corporation stock for $4,725. a. What is Susan’s realized gain or loss from the sale on March 1, 2023? b. What is Susan’s recognized gain or loss from the sale on March 1, 2023? c. What is Susan’s basis in the 135 shares purchased on March 22, 2023? d. When does Susan’s holding period begin for the 135 sharesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT