Mr. Punjeet is a married taxpayer filing jointly with his spouse, Anjou.

Mr. Punjeet follows a civil calendar year for his business.

Mr. Punjeet is a registered security dealer . He owns 1,000 shares of Coca-Cola (Basis per share $10, and FMV $2)

Two months prior to the year-end, Mr. Punjeet acquires 500 stocks of Regis (Basis per share $10) , he sold for 4% each.

Task: Discuss the tax treatment of Mr. Punjeet transactions