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Can you please explain the answer? 79. Malcolm Smith , a dealer in securities , is a 60 percent owner of the Real Partnershipwhich on
Can you please explain the answer?
79. Malcolm Smith , a dealer in securities , is a 60 percent owner of the Real Partnershipwhich on July 1 , 2016, sold to him Acme Securities which it had held as aninvestment for three years . The basis of the securities to Real was $ 40, 000 ; the salesprice to Malcolm was $100, 000 . On his 2016 tax return , Malcolm should reportincome of the character and amount of "2 .$36, 000 long - term capital gainD .$36, 000 short - term capital gain[ .$36, 000 ordinary incomed .$ 18, 000 long-term capital gainStep by Step Solution
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