1) A buys a bond for $1,500 and it has a redemption amount of$1,000. A holds the bond for 2 years and amortizes $200 of thepremium. A exchanges the bond for $1,400 of XYZ stock. What is Aâsbasis in the bond at the time of the exchange? How much is Aâsamount realized? How much gain or loss did A recognize on theexchange?
2) A buys 100 shares of ABC on five different occasions. Thepurchases were done in the following order and for the followingamounts per share.
1 â 105
2- 108
4- 116
5 â 100
A sells 300 shares for $30,150. If A gave no instructions to herbroker what is Aâs gain or loss on the transaction? If A instructedher broker to sell her shares with the highest basis what would hergain or loss be?
3)A gives a gift of property to B. Aâs basis in the property was$500,000 and its fair market value on the date of the gift was$300,000. What is Bâs gain or loss on the disposition of the giftif B sells the property for $100,000? 600,000? $400,000?
4) A owns 100 shares of ABC stock with a basis of $10,000. OnFebruary 1, 2016 A sells the shares for $8,000. On February 28,2016 A buys 100 shares of ABC stock for $7,000. What was Aâsgain/loss on the February 1 sale? What is Aâs basis in the sharesacquired on February 28?
5) A acquires a house for $400,000 and incurs $7,500 of variousclosing fees. A also paid $3,000 of the sellers real estate taxeswhich was part of the $400,000 purchase price. While A owned thehouse A built a swimming pool for a cost of $32,000 but deducted$15,000 as a medical expense, A deducted $9,000 of expenses as ahome office deduction of which $4,500 was for depreciation. A sellshis home to B on October 1, 2016. A receives $600,000 in cash and Bassumes Aâs mortgage of $300,000. B will pay the entire yearâs realestate tax of $12,000 in addition to the $300,000 purchase price.The brokerâs commission on the sale is $30,000. B is obtainingfinancing and to help B, A will pay points to the lender of$10,000.What is Aâs basis in the house, what is the amount realizedby A on the sale and what is Aâs gain or loss with respect to thehouse?
1) A buys a bond for $1,500 and it has a redemption amount of$1,000. A holds the bond for 2 years and amortizes $200 of thepremium. A exchanges the bond for $1,400 of XYZ stock. What is Aâsbasis in the bond at the time of the exchange? How much is Aâsamount realized? How much gain or loss did A recognize on theexchange?
2) A buys 100 shares of ABC on five different occasions. Thepurchases were done in the following order and for the followingamounts per share.
1 â 105
2- 108
4- 116
5 â 100
A sells 300 shares for $30,150. If A gave no instructions to herbroker what is Aâs gain or loss on the transaction? If A instructedher broker to sell her shares with the highest basis what would hergain or loss be?
3)A gives a gift of property to B. Aâs basis in the property was$500,000 and its fair market value on the date of the gift was$300,000. What is Bâs gain or loss on the disposition of the giftif B sells the property for $100,000? 600,000? $400,000?
4) A owns 100 shares of ABC stock with a basis of $10,000. OnFebruary 1, 2016 A sells the shares for $8,000. On February 28,2016 A buys 100 shares of ABC stock for $7,000. What was Aâsgain/loss on the February 1 sale? What is Aâs basis in the sharesacquired on February 28?
5) A acquires a house for $400,000 and incurs $7,500 of variousclosing fees. A also paid $3,000 of the sellers real estate taxeswhich was part of the $400,000 purchase price. While A owned thehouse A built a swimming pool for a cost of $32,000 but deducted$15,000 as a medical expense, A deducted $9,000 of expenses as ahome office deduction of which $4,500 was for depreciation. A sellshis home to B on October 1, 2016. A receives $600,000 in cash and Bassumes Aâs mortgage of $300,000. B will pay the entire yearâs realestate tax of $12,000 in addition to the $300,000 purchase price.The brokerâs commission on the sale is $30,000. B is obtainingfinancing and to help B, A will pay points to the lender of$10,000.What is Aâs basis in the house, what is the amount realizedby A on the sale and what is Aâs gain or loss with respect to thehouse?
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