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C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in...

  1. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

How much of the loss may C deduct on his 2020 return?

What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

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