Question

Mr. and Mrs. Garcia purchased 200 shares of stock for $55 per share on September 30,...

Mr. and Mrs. Garcia purchased 200 shares of stock for $55 per share on September 30, 2018. On June 30, 2020, the Garcia family decides to sell these shares for $40 generating a loss of $15 per share. On July 15, 2020, the Garcia family realized they made a mistake and repurchased 200 shares for $45 per share.

How much of the loss will the Garcia family be able to deduct in 2020?

What is their basis in the 200 shares that they repurchased?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

How much of the loss will the Garcia family be able to deduct in 2020-

Answer - Nil

Though they made a loss of $ 15 per share by selling 200 shares of stock Gracia Family will not be able to dedcut any loss in2020.This is because repurchased the same share stock within 30 days .IRS states any loss made from sale of stock which is repurchased within 30days from date of sale cannot be setoff against reported income

What is their basis in the 200 shares that they repurchased

Answer- $ 60 basis per share ,$ 12,000 for 200 shares

The basis in the 200 shares that they repurchased will be the cost plus loss on sale of the sahre stock  which was not allowed to be deducted . .Hence their basis will be cost $ 45 plus loss of $ 15 on sale which they were not allowed to dedcution,Thus the basis will be $ 60 per share stock

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
Lawson purchased 100 shares of Jerzen stock for $6 per share in year 1. On July...
Lawson purchased 100 shares of Jerzen stock for $6 per share in year 1. On July 1, year 3, Lawson sold the 100 shares for $4 per share. On July 16, year 3, Bo repurchased 25 shares for $5 per share. In computing Bo's year 3 taxable income, he ay deduct a capital loss in the amount of? Help, been stuck on this question for a while.
A flood completely destroyed Mr. and Mrs. Washington’s home on November 30 of 2018. The home...
A flood completely destroyed Mr. and Mrs. Washington’s home on November 30 of 2018. The home was located in a federally declared disaster area. They claimed the loss on their current-year tax return. Based on the following facts, what is the amount of loss Mr. and Mrs. Washington can deduct for 2018? Basis (contents not considered for this purpose) $110,000 Fair market value before flood 150,000 Fair market value after flood 30,000 Insurance reimbursement received February 15 of the following...
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock...
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $10 a share at this time. Sep. 21 Announced a 1-for-2 reverse stock split. Shares were trading at $8 per share at the time. Nov. 1 Issued 3,000 common shares at $18 per share. Dec. 20 Repurchased 10,000 common shares for $16 per share. This was the...
John bought 1000 shares of Intel stock on October 18, 2014, for $30 per share plus...
John bought 1000 shares of Intel stock on October 18, 2014, for $30 per share plus a $750 commission he paid his broker. On December 12, 2018, he sells the shares for $42.50 per share. He also incurs a $1000 fee for this transaction. a.) What is John's adjusted basis in the 1000 shares of Intel stock? b.) What amount does John realize when he sells the 1000 shares? c.) What is the gain/loss for John on the sale of...
Ten years ago, Ms. Dee purchased 1,800 shares of Fox common stock for $134 per share....
Ten years ago, Ms. Dee purchased 1,800 shares of Fox common stock for $134 per share. On June 2 of the current year she sold 900 shares for $97 per share. Compute Ms. Dee’s recognized loss on sale assuming that: Required: She purchased 1,000 shares of Fox common stock on June 28 for $99 per share. She purchased 1,000 shares of Fox common stock on August 10 for $104 per share. Compute Ms. Dee’s tax basis in the 1,000 shares...
You purchased 200 shares of Facebook common stock on margin at $210 per share. Assume the...
You purchased 200 shares of Facebook common stock on margin at $210 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Three days later, the stock price falls to $190 per share. Will you receive a margin call? (15 points) Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. (15 points)
Calculate the taxable capital gain or allowable capital loss to be reported in 2018 for each...
Calculate the taxable capital gain or allowable capital loss to be reported in 2018 for each of the following unrelated situations and show your calculations: (a) On September 15, 2018, Polly Ester sold 200 shares of her holdings in Sears Canada Inc. for $30 per share. (For the ACB of these shares, please round to TWO decimal places!). The shares had been acquired as follows: February 2, 2017 purchased 200 shares @$18 per share December 15, 2017 sold 50 shares...
an. 14 Purchased 200 shares of Robotic stock, paying $ 52 per share. The investment represents...
an. 14 Purchased 200 shares of Robotic stock, paying $ 52 per share. The investment represents 3 %((that's what the book says)) ownership in Robotic's voting stock. Dollar Bill does not have significant influence over Robotic. Dollar Bill intends to hold the investment for the indefinite future. Aug. 22 Received a cash dividend of $ 0.44 per share on the Robotic stock. Dec. 31 Adjusted the investment to its current market value of $ 47 per share. 31 Robotic reported...
On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million...
On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $150 million. Also outstanding at December...
You purchased 100 shares of common stock on margin at $45 per share. Assume the initial...
You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30? Ignore interest on margin. A.0.33 B.0.55 C.0.43 D.0.23 E.0.253. Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker. If the initial margin is 55%, how much did you...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT