Question
Albert sold the following securities during the year and received a Form 1099-B that showed the following information: Security Description Date Acquired Date Sold Selling
Albert sold the following securities during the year and received a Form 1099-B that showed the following information: Security Description Date Acquired Date Sold Selling Price Adjusted Basis Orange, Inc. 100 Shares Common 02/11/98 04/16/16 $ 3,050 $ 2,150 Banana, Inc. 100 Shares Common 07/17/02 07/31/16 2,000 4,200 Grape, Corp. 100 Shares Preferred 12/08/15 09/25/16 9,000 10,500 Plum, Inc. 5 Bonds due 4/2016 12/30/06 01/02/16 5,200 5,400 Peach Mutual Fund 5,010.150 Shares 05/30/07 10/22/16 60,100 56,000 The selling price given is net of sales commissions. In addition to the above amounts, the Grapefruit mutual fund distributed a long-term capital gain of $450 on December 30, 2016. Albert purchased 5 acres of raw land in Reno, NV, 10 years ago. His basis in the land was $90,000. On August 1, 2016, he sold the land for $140,000 on the installment method. Albert received $58,800 in the year of sale, and the balance was payable at $8,120 per year for the next 10 years, plus a market rate of interest. On May 15, 2016, Albert and Allison sold their personal residence for $585,150 and purchased a new house for $725,000. They had owned the old house for 20 years and it had an adjusted basis of $35,075. The house had been their personal residence for all the years they were married. They moved into the new house on May 18, 2016. Required: Combine this new information about the Gaytor family with the information from Chapters 1, 2, 3, 4, 5, 6 and 7 and complete a revised 2016 tax return for Albert and Allison. No AMT is payable. This completes the Group 5 multichapter case.
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