Question
Lucy owns 450 shares of Linus, Inc. (adjusted basis $220,000). On September 28, 2019, she sells the 450 shares for their fair market value of
Lucy owns 450 shares of Linus, Inc. (adjusted basis $220,000). On September 28, 2019, she sells the 450 shares for their fair market value of $204,000. On October 12, 2019, she purchases 500 shares of Linus, Inc. for $221,400. In addition, Lucy received a gift of land in 1986 worth $32,500. The donors adjusted basis was $51,000. Lucy sold the land in 2019 for $85,000.
- What is the realized gain/loss and recognized gain/loss on the September 28th sale AND what is the adjusted basis on the 450 shares purchased on October 12?
- What is the recognized gain or loss from the land transaction in 2019? Assume no gift tax was paid.
- Find the FIRST PAGE only of an IRS regulation that supports your answer to #1.
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Gapenskis Understanding Healthcare Financial Management
Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
