Karen Samuels (Social Security number 123-45-6789) makes the following purchases and sales of stock:

Transaction	Date		Number of Shares			Company			Price per Share
Purchase	1-1-2015		300			MDG			$75
Purchase	6-1-2015		150			GRU			300
Purchase	11-1-2015		60			MDG			70
Sale	12-3-2015		200			MDG			80
Purchase	3-1-2016		120			GRU			375
Sale	8-1-2016		90			GRU			330
Sale	1-1-2017		150			MDG			90
Sale	2-1-2017		75			GRU			500

Assuming that Karen is unable to identify the particular lots that are sold with the original purchase, what is the recognized gain or loss on each type of stock as of the following dates.

If an amount is zero, enter "0".

a. For the period from 1-1-2015 to 7-1-2015.

There is no recognized gain or loss of $.

Feedback

Cost identification problems are frequently encountered in securities transactions. For example, the Regulations require that the taxpayer adequately identify the particular stock that has been sold (specific identification).

b. For the period from 7-2-2015 to 12-31-2015.

There is a recognized gain of $ for MDG.

Feedback

Partially correct

c. For the year ending 12-31-2016.

There is a recognized gain of $ for GRU.

Feedback

Partially correct

d. For the period 1-1-2017 to 2-1-2017.

There is a recognized gain of $ for MDG.

There is a recognized gain of $ for GRU.

Feedback

Cost identification problems are frequently encountered in securities transactions. Regulations require that the taxpayer adequately identify the particular stock that has been sold.

e. Form 8949 and Schedule D (Form 1040) are used to report sales of capital assets (which include stock sales). Complete the forms for part (c) of this problem, assuming that the brokerage firm did not report Karens basis to the IRS. Note: You only are required to complete Schedule D (Form 1040) through line 16.

Enter all amounts as positive numbers.

Form 8949 Department of the Treasury Internal Revenue Service	Sales and Other Dispositions of Capital Assets Information about Form 8949 and its separate instructions is at www.irs.gov/form8949. File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.	OMB No. 1545-0074
		2016 Attachment Sequence No. 12A

Name(s) shown on return Karen Samuels

Social security number or taxpayer identification number 123-45-6789

Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

Part I	Short-Term. Transactions involving capital assets you held 1 year or less are short term. For long-term transactions, see page 2.
	Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions).

You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)

(B) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS

(C) Short-term transactions not reported to you on Form 1099-B

1	(a) Description of property (Example: 100 sh. XYZ Co.)	(b) Date acquired (Mo., day, yr.)	(c) Date sold or disposed of (Mo., day, yr.)	(d) Proceeds (sales price) (see instructions)	(e) Cost or other basis. See the Note below and see Column (e) in the separate instructions	Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions.		(h) Gain or (loss).Subtract column (e) from column (d) and combine the result with column (g)
						(f) Code(s) from instructions	(g) Amount of adjustment
2	Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box Aabove is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked)
Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 37768Z

Form 8949 (2016)

Form 8949 (2016)

Attachment Sequence No. 12A

Page 2

Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side	Social security number or taxpayer identification number
Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

Part II	Long-Term. Transactions involving capital assets you held more than 1 year are long term. For short-term transactions, see page 1.
	Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions).
You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.
(D)	Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above)
(E)	Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS
(F)	Long-term transactions not reported to you on Form 1099-B

1	(a) Description of property (Example: 100 sh. XYZ Co.)	(b) Date acquired (Mo., day, yr.)	(c) Date sold or disposed of (Mo., day, yr.)	(d) Proceeds (sales price) (see instructions)	(e) Cost or other basis. See the Note below and see Column (e)in the separate instructions	Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions.		(h) Gain or (loss).Subtract column (e) from column (d) and combine the result with column (g)
						(f) Code(s) from instructions	(g) Amount of adjustment
2	Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box Eabove is checked), or line 10 (if Box F above is checked)
Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.
Form 8949 (2016)

SCHEDULE D (Form 1040) Department of the Treasury Internal Revenue Service (99)	Capital Gains and Losses Attach to Form 1040 or Form 1040NR. Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.	OMB No. 1545-0074
		2016 Attachment Sequence No. 12

Name(s) shown on return Karen Samuels

Your social security number 123-45-6789

Part I

Short-Term Capital Gains and LossesAssets Held One Year or Less

See instructions for how to figure the amounts to enter on the lines below.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)		(h) Gain or (loss)Subtract column (e) from column (d) and combine the result with column (g)
This form may be easier to complete if you round off cents to whole dollars.
1a	Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . . . . . . . . . . . . . . . . . . . .
1b	Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . . . . . . .
2	Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . . . . . . .
3	Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . . . . . . .
4	Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . .				4
5	Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1				5
6	Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				6	()
7	Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . . . . . . . . . .				7

Part II

Long-Term Capital Gains and LossesAssets Held More Than One Year

See instructions for how to figure the amounts to enter on the lines below.		(d) Proceeds (sales price)	(e) Cost (or other basis)	(g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)		(h) Gain or (loss)Subtract column (e) from column (d) and combine the result with column (g)
This form may be easier to complete if you round off cents to whole dollars.
8a	Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . . . . . . . . . . . . . . . . . . . .
8b	Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . . . . . . .
9	Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . . . . . . .
10	Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . . . . . .
11	Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				11
12	Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1				12
13	Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				13
14	Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				14	()
15	Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .				15

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 11338H

Schedule D (Form 1040) 2016

Schedule D (Form 1040) 2016

Page 2

Part III

Summary

16

Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below.

If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22.

If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22.

17

Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22.

18

Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions . . . . . . . . .

18

19

Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

20

Are lines 18 and 19 both zero or blank?

	Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Don't complete lines 21 and 22 below.
	No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below.

21

If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:

The loss on line 16 or

($3,000), or if married filing separately, ($1,500)

}

21

()

Note: When figuring which amount is smaller, treat both amounts as positive numbers.

22

Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?

	Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
	No. Complete the rest of Form 1040 or Form 1040NR.

Schedule D (Form 1040) 2016