Fran bought stock in the FCM Corporation 4 years ago at a price of $18,000 . She sold it this year for $22,225 and paid her broker $225 from the proceeds of the sale
a. What is Fran's amount realized?
b. What is Fran's adjusted basis?
c. What is Fran's realized gain or loss?
d. What is Fran's recognized gain or loss?
e. How much of the gain or loss should be included in her tax return?
a. Amount realized: $22,000 = $22,225 - $225
b. Adjusted basis: $18,000
c. Realized gain: $22,225 - $225 - $18,000 = $4,000
d. Recognized gain: $22,225 - $225 - $18,000 = $4,000
e. $4,000 . There is no limit on the amount of capital gain to be included in tax returns
You might also like to view...
A service firm will usually have a low amount of inventory, consisting primarily of supplies
Indicate whether the statement is true or false
Giving positive feedback is not as important as giving negative feedback
a. True b. False
What is a cultural trend that places value on an individual's ability to be a creator of things as well as a consumer of things?
A. Maker movement B. RFID electronic product code C. Makerspace D. Computer-aided design/computer-aided manufacturing
A taxpayer who realizes a loss on the exchange of like-kind property can elect to recognize the loss.
Answer the following statement true (T) or false (F)