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Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joes basis was $35,000, and the fair market value on July 1, 2012 (the date
Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joes basis was $35,000, and the fair market value on July 1, 2012 (the date of death) was $45,000. The shares were distributed to Tyneka on July 15, 2012. Tyneka sold the stock on July 30, 2013, for $33,000. After giving the matter more thought, she decides that Aqua is a good investment and purchases 1,000 shares for $30,000 on August 20, 2013. a. What is Tynekas basis for the 1,000 shares purchased on August 20, 2013? b. What would be Tynekas basis for the 1,000 Aqua shares inherited from Joe if she had given 1,000 Aqua shares to Joe on March 1, 2012 (assuming that no gift tax was paid)? Her basis at the date of the gift was $35,000, and the fair market value was $45,000. c. Could Tyneka have obtained different tax consequences in (a) if she had sold the 1,000 shares on December 27, 2012, and purchased the 1,000 shares on January 5, 2013? Explain
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