D purchased 2,000 units of a private company’s shares for $45,000 in 2020. If he sold the 2,000 units for $60,000 in 2021. What is the capital gain or loss on his disposition in 2021

Q: Helga had AGI of $135,000 in 2018. She donated corporate stock with a basis of $28,000 to a…

A: Part (a) Basis = $ 28,000; Fair Value = $ 26,000Period of holding: From June 15, 2017 till April 3,…

Q: On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10,…

A: loss is $ 4,000basis for new shares is 90,000

Q: a. Hale sells 1,000 shares of his Section 1244 stock ("small business corporation" stock) at a loss…

A: (a) Determination of treatment of Section 1244 small business stock losses Section 1244 allows a…

Q: John Reardon purchased 100 shares of Tomco Corporation in December 2019 at a total cost of $1,762.…

A: The capital gain realized is calculated as the difference of sale price and buying price. Holding…

Q: Natasha gets stake in Big Red Airline Corporation from her Uncle Tony's inheritance. On August 2,…

A: Basis of stock for Sonya is $2,000 because it's based on the value on the date of owner's death…

Q: On October 30, 2019, Tess bought 500 shares of ACTS stock for ₱ 640.00 per share. On November 15,…

A: The gain or loss on the investment can be computed by finding the difference between sales price…

Q: Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,800 on January 15, 2017. On December…

A: In wash sale, no loss is recognized at the time of the sale.

Q: Fiona purchased 200 shares of Oxygon stock for $11 a share on August 11, 2020. On July 28, 2021, the…

A: Answer:-  Capital gain meaning:- The profit earned on the sale of an asset for example, stock, bonds…

Q: Tammy, who is single, purchased 1,000 shares of qualified small business stock in Startup, Inc., in…

A: Qualified Small Business Stock - It is provision 1202, which provides tax benefits to individual who…

Q: In 2016, Jane Jones pays $2,500 for 1,000 shares of ABC common stock. On August 27, 2020, Jane…

A: Common stock or share is a part of equity and reported under equity section of balance sheet, common…

Q: 1. Nicco owns 6,000 shares of a company at P780 per share. He also owns 25,000 shares for another…

A: 1. Total value of shares = Number of shares * Price per share

Q: Sue has 5,000 shares of Sony stock that have an adjusted basis of $27,500. She sold the 5,000 shares…

A: Given: Number of shares = 5000 Cost of shares = $27,500 Sale value of shares = $10,000 Land value =…

Q: Jenna owns 30% of the stock in mockingbird, a calendar year S corporation. Her basis in the stock as…

A: a. Limitation on Partner's share of losses: The deduction of the partner's distributive share of…

Q: LO.1, 2, 4 On December 28, 2019, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On…

A: Wash sales:   A wash sale is a sale of a security (stocks, bonds, options) at a loss and repurchase…

Q: What is the tax impact on john's income from the stock options in 2016?

A: For the year 2016 :-As per Taxation rules, Stock option will be included in the taxable income as…

Q: Shen purchased corporate stock for $46,500 on April 10, 2018. On July 14, 2020, when the stock was…

A: Income tax is the amount that is paid by the taxpayers of the country from their different sources…

Q: Harvey acquired shares in Macquarie Bank in December 2019 for $90,000. He needed cash quickly and so…

A: Taxable income includes income from different sources such as income from salary, business income,…

Q: How much of the October 1, 2020 loss may Tom deduct this year?

A: Loss deduct = purchases - sales Given purchases = 31000 Sales = 10000

Q: Sam receives 100 stock options in XYC Co, which is a public company. He was granted the stock…

A: Sam receives 100 Stock Options in XYC Co. Granted stock option in 2016  Fair value in 2016 = $5…

Q: In 2018, Joshua gave $10,500 worth of XYZ stock to his son. In 2019, the XYZ shares are worth…

A: Shares refer to the equity that represents the ownership interest in the organization. Shares are…

Q: there are no tax consequences for either individual in a given year, you should clearly state this…

A:

Q: Frank has 200 shares of XYZ, Inc. with a basis of $5,000 and a value of 7,500. He receives a…

A: Dividend- A dividend is an allocation of profits by a company to its shareholders. When a company…

Q: Dimas owns a parcel of land worth P5,000,000 which he inherited from his father in 2018 when it was…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Mr CoCo initially held 100 shares of four stocks; however, he sold all the four stocks (100 shares…

A: Meaning of Capital Gain or Capital Loss.:- Taxable capital gains for the year are reduced by the…

Q: purchased 100 units of a private company's shares for $450 in 2020. If he sold the 100 units for…

A: Since you have multiple questions we will solve the first question for you, if you want any specific…

Q: 35. Brian owns 200 shares of Bell Corp. stock purchased in January 2018 for $2,400. On January 30,…

A: A right issue refers to the offer of shares to the existing shareholders to buy additional shares at…

Q: John bought $1,000 shares of intel stock on Oct 18,2016, for $30 per share plus $750 commission he…

A: Adjusted basis =Purchase price +expenses on purchase

Q: Peter is the sole shareholder in a calendar year S corporation. In 2021, his stock basis is $50,000,…

A: S-Corporation: S corporation is a a type of legal business entity and  have specific Internal…

Q: Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On…

A: The adjusted value of stock refers to the change in the cost per share of the Bluebird stock which…

Q: Sadie sold 11 shares of stock to her brother, George, for $600 sixteen months ago. Sadie had…

A: Sadie's brother receives a dual basis in the stock and the loss of $200 is deferred.  When the stock…

Q: Paul sold 200 shares of C Corporation stock on September 3, 2018, for $42 a share. He received the…

A: Sales Vale of Shares =200 shares x $42 = $8,400 Original Cost =200 shares x $10 = $2,000 Value of…

Q: Anne has 5,500 shares of Sony stock that have an adjusted basis of $35,750. She sold the 5,500…

A: Gain or Loss upon sales of Stock - At the time of selling stock, taxpayer either receive gain or…

Q: Dr. Hu owns 1,017 shares of EVKars Ltd. They have an ACB of $28 a share. On August 20,2020 she sells…

A:

Q: On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10,…

A: Please see the next step for the solution

Q: Karen purchased 100 shares of X-Corporation Stock in 2020. X-Corporation is registered and…

A: Working :-                                         Number of  shares  purchased by…

Q: On December 28, 2020, Kramer sells 150 shares of Lavender, Inc. stock for $77,000. On January 10,…

A: Recognized Gain or loss:- It is the profit one makes from selling an asset if the sale value is more…

Q: John bought 1,000 shares of intel stock on October 18,2015, for $30 per share, plus a $750…

A: Introduction: An asset's cost basis is adjusted for various events that take place during its…

Q: n June of 2019, Kevin inherits stock worth $125,000. During the year, he collects $5,600 in…

A: Dividend refers to the reward, cash or otherwise that a company give to its shareholders. It can be…

Q: James bought a beachfront house in March 2011 for $140,000. After renting the house out for 3 years,…

A: Sales Consideration                $260000 Purchase Price in March 2011 $140000  Capital Gains…

Q: Bob purchases 25,000 shares of common stock of Super Duper for $100,000. Exactly one year later when…

A: An investor can gain on assets when the current price of the asset exceeds the purchase price. This…

Q: Mr. Z purchased 100 units of a private company's shares for $450 in 2020. If he sold the 100 units…

A: Introduction:- Shares are equity ownership units in a firm. Shares exist as a financial asset for…

Q: Sue has 5,250 shares of Sony stock that have an adjusted basis of $31,500. She sold the 5,250 shares…

A: Given SUE has 5,250 shares of SONY stock that have an adjusted basis of $31,500.She sold the 5,250…

Q: At the beginning of the current year, Laura owns 100% of the stock of ABC Corporation. On 7/1/20,…

A: Dividend: It refers to the amount of income that is to be distributed to the shareholders. It is the…

Q: Crystal owns 177 shares of Carson Incorporated stock that has an adjusted basis of $133,635. On…

A: Computation of the above requirements Crystal's realized and recognized gain or loss and adjusted…

Q: On September 6, 2016, Andrew, who is married, purchased Allstar Corporation stock for $220,000 from…

A: Section 1244 stock refers to the tax treatment of the restricted stock by the IRS. Section 1244 of…

Q: John bought 2,100 shares of Intel stock on October 18, 2017, for $52 per share plus a $750…

A: Gain on sale of stock means when sale or realisation value of stock is, more than, cost or adjusted…

Q: Stan owns 1,500 shares of Red Corporation common stock which he purchased in 2011 for $30,000. On…

A: Statement showing loss on sale of shares Particulars Amount $ Amount $…

Q: Crystal owns 177 shares of Carson Incorporated stock that has an adjusted basis of $133,635. On…

A: Recognized Gain or loss It is important for the entity to recognized the gain or loss while purchase…

Q: NEED HELP ON PART B, PLEASE. Dahlia is in the 32 percent tax rate bracket and has purchased the…

A: To minimize her current-year capital gain she should sell the shares acquired at a higher cost at…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.