Thania inherited 1,000 shares of Aqua, Inc. stock from Joe. Joes basis was $35,000, and the fair
Question:
Thania inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe’s basis was $35,000, and the fair market value on July 1, 2022 (the date of death), was $45,000. The shares were distributed to Thania on July 15, 2022. Thania sold the stock on July 29, 2023, 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 19, 2023.
a. What is Thania’s basis for the 1,000 shares purchased on August 19, 2023?
b. Could Thania have obtained different tax consequences in part (a) if she had sold the 1,000 shares on December 27, 2022, and purchased the 1,000 shares on January 5, 2023? Explain.
Step by Step Answer:
a Thania receives a steppedup basis of 45000 for the stock received on July ...View the full answer
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
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