Question

Three years ago, Adrian purchased 310 shares of stock in X Corp. for $35,340. On December 30 of year 4, Adrian sells the 310 shares for $30,380. (Leave no answers blank. Enter zero if applicable.)

a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?

b. Assume the same facts as in part (a), except that on January 20 of year 5, Adrian purchases 310 shares of X Corp. stock for $30,380. 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?

Answer 1

a)

Ans:$3000

Andrian Purchased 310 shares at $35,340 and The same sold at $30,380 Hence There is a Loss of $4960

Andrian has no other capital Losses so He can claim a loss of $3000 and Remaining carry Forward next Year I.e $1960 is carry forward.

b)Ans

Andrian’s Purchased the same type of stock at $30,380 Then The basis of stock shall be taken as

Purchased Price Plus an amount of loss on Previous sales, Provided the Condition is that If she is purchased within 30 days so Here   she is Purchased 21 days

So

$30380 + $4960=$35,340