Question
Two years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30, 2018, Adrian sells the 100 shares for $6,000
Two years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30, 2018, Adrian sells the 100 shares for $6,000
i. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 2018 tax return? State the reason.
[3 Marks]
ii. Assume the same facts as in part (a), except that on January 20, 2019, Adrian purchases another 100 shares of X Corp. stock for $8,000. How much loss from the sale on December 30, 2018, is deductible on Adrians 2018 tax return? What basis does Adrian take in the stock purchased on January 20, 2019?
[4 Marks]
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