Question

Sonya, who is single, owns 20,000 shares of Malthouse Corporation stock. She acquired the stock in...

Sonya, who is single, owns 20,000 shares of Malthouse Corporation stock. She acquired the stock in 2016 for $75,000. The stock is qualifying small-business stock. On August 12, 2019, Sonya's father tells her of a rumor that Malthouse will file for bankruptcy within the next week. The next day, Sonya sells all her shares of Malthouse for $20,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Loss on sale of Malthouse Corporation stock = $20,000-$75,000 = $55,000

Since Malthouse Corporation stock is a QSBS, Sonya can claim $50,000 loss as ordinary loss.

And Maximum Capital Loss Deduction is $3,000.

So. sonya is eligible to take deduction of loss of $53,000 and remaining 2,000 of the loss is carried forward for subsequent years.

***********************************************************************************************************************************

Please like if you got your query solved, reach back to us via comment if any query to understand. All the Best!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Moss Corporation has a single class of common stock outstanding. Tanya owns 1,000 ​shares, which she...
Moss Corporation has a single class of common stock outstanding. Tanya owns 1,000 ​shares, which she purchased five years ago for $ 140,000. Moss declares a stock dividend payable in 8​% preferred stock having a $ 100 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution December 16 of the current yearlong the common stock was worth $ 190 per​ share, and the preferred stock was worth $ 100 per...
James, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation...
James, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under Section 1244, at a cost of $120,000 two years ago. James gives the stock to his daughter. The daughter sells the stock for $10,000 two years later. How will the stock be treated for tax purposes, give the dollar amounts?
Kelly, who has AGI of $250,000, owns stock in Blue corporation with a basis of $20,000....
Kelly, who has AGI of $250,000, owns stock in Blue corporation with a basis of $20,000. he donates the stock to a qualified charitable organization on July 5, 2018 A.) what is the amount of Kelley's charitable contribution deduction, assuming that he purchased the stock on March 4, 2018 and the stock had a fair market value of $27,000 when he made the donation> B.) Assume the same facts as in a., except that kelly purchased the sock on August...
A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more...
A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more money in the stock market. Statistically speaking, which of the following investments will reduce her risk (variance) the most
On May 9, 2016, Calvin acquired 700 shares of stock in Aero Corporation, a new startup...
On May 9, 2016, Calvin acquired 700 shares of stock in Aero Corporation, a new startup company, for $70,000. Calvin acquired the stock directly from Aero, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2018, Calvin sold all of his Aero stock for $7,000. Assume that Calvin is single. If an amount is zero, enter "0". As a result of the sale, Calvin...
Janet acquired 1,000 shares of Rocky common stock in 2010 at a cost of $20,000 ($20...
Janet acquired 1,000 shares of Rocky common stock in 2010 at a cost of $20,000 ($20 per share). On December 1, 2017, Janet receives 100 additional shares of Rocky as the result of Rocky’s optional dividend reinvestment plan. The amount of Janet’s dividend reinvestment to acquire the 100 shares was $3,000. Janet instructs her broker to sell the 100 new shares on August 2, 2018 for $35 per share ($3,500 total sales price). What is the amount and character of...
46. Smith owns 750 shares of the total outstanding stock of 1,000 shares for Blue Company....
46. Smith owns 750 shares of the total outstanding stock of 1,000 shares for Blue Company. Her stock basis is $50,000. Smith, subsequently, sells 200 of her shares back to Blue      Company for $20,000. Blue Company has E & P of $80,000. Smith’s sale of her stock to Blue Corporation will be treated as: A) dividend income                 B) a sale transaction C) a return of capital                   D) some other treatment 47. Ally owns 25% of Raisman Corporation's single class of...
Kelly owns 100 shares of Boston Corporation common stock which was purchased on March 20, 2000,...
Kelly owns 100 shares of Boston Corporation common stock which was purchased on March 20, 2000, for $30,000. On August 8 of the current year, she receives a distribution of 100 stock rights. Each stock right has a $15 FMV and the FMV of the Boston common stock is $60 per share. With each stock right, she may acquire on share of Boston common stock for $115. a. How much gross income must Kelly recognize? b. What is the basis...
A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more...
A woman owns 42 shares of stock in the Mandra Corporation. She wants to invest more money in the stock market. Statistically speaking, which of the following investments will reduce her risk (variance) the most. A) buying more stock in the Mandra Corporation (MC) B) buying stock in the Altes Corporation, a company in the same industry whose stock returns have correlation with MC of 0.9 C) buying stocks in SevCorp a heavy manufacturing company whose stock returns have correlation...
Heather owns 100 shares of Diego Corporation common stock for which she paid $2,000. She receives...
Heather owns 100 shares of Diego Corporation common stock for which she paid $2,000. She receives a nontaxable stock dividend of 10 shares of preferred stock on her common stock. The fair market values on the date of distribution of the preferred stock dividend are $20 a share for common stock and $100 a share for preferred stock. What is Heather's basis in the common and preferred shares? Round any division to two decimal places and use rounded values in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT