Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.c. Complete a Form 8949 for the Hammonds. Assume that the stock sale information was reported to the Hammonds on a Form 1099–B and that basis information was provided to the IRS. 2 Totals. Add the amounts in columns (d), (e), (g), and (h)(subtract negative amounts). Enter each total here and includeon your Schedule D, line 8b (if Box D above is checked), line 9(if Box E above is checked), or line 10 (if Box F above ischecked) >Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, andenter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of theadjustment.Form 8949 (2019) 1Adjustment, if any,(h)(a)(b)(c)(d)(e)to gain or loss. If youGain orDescription of propertyDate acquiredDate sold orProceedsCost or other basis.enter an amount in(loss).(Example: 100 sh. XYZ(Mo., day, yr.)disposed of(sales price) See the Note belowcolumn (g), enter aSubtractCo.)(Mo., day, yr.)(seeand see Column (e) code in column (f). Seecolumn (e)instructions)in the separatethe separatefrom columninstructionsinstructions.(d) andcombine the(f)(g)result withCode(s)Amount ofcolumn (g)fromadjustmentinstructions100 shares of Purple Company12/13/1705/23/1950 shares of Beige Company12/14/1407/14/19100 shares of Black Company05/15/1810/18/19100 shares of Gray Company04/12/1710/18/19

In Part C, it is been mentioned that we have to assume that the stock sale information was reported…

Answered: Phil and Susan Hammond are married…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter17: Property Transactions: §1231 And Recapture Provisions

Section: Chapter Questions

Problem 38P

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Question

Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.

c. Complete a Form 8949 for the Hammonds. Assume that the stock sale information was reported to the Hammonds on a Form 1099–B and that basis information was provided to the IRS.

2 Totals. Add the amounts in columns (d), (e), (g), and (h)
(subtract negative amounts). Enter each total here and include
on your Schedule D, line 8b (if Box D above is checked), line 9
(if Box E above is checked), or line 10 (if Box F above is
checked) >
Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and
enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the
adjustment.
Form 8949 (2019)

1
Adjustment, if any,
(h)
(a)
(b)
(c)
(d)
(e)
to gain or loss. If you
Gain or
Description of property
Date acquired
Date sold or
Proceeds
Cost or other basis.
enter an amount in
(loss).
(Example: 100 sh. XYZ
(Mo., day, yr.)
disposed of
(sales price) See the Note below
column (g), enter a
Subtract
Co.)
(Mo., day, yr.)
(see
and see Column (e) code in column (f). See
column (e)
instructions)
in the separate
the separate
from column
instructions
instructions.
(d) and
combine the
(f)
(g)
result with
Code(s)
Amount of
column (g)
from
adjustment
instructions
100 shares of Purple Company
12/13/17
05/23/19
50 shares of Beige Company
12/14/14
07/14/19
100 shares of Black Company
05/15/18
10/18/19
100 shares of Gray Company
04/12/17
10/18/19

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