I need an individual tax return problem solved using the following tax forms tha

Question

I need an individual tax return problem solved using the following tax forms that apply: 1040, 8949, 8958, 8959, 8960 and 8962. Please post solutions in PDF format. Thank you

On June 14, 2014, the Millers sold 500 shares of Garnet Corporation for $17,500 ($35 per share). They owned 1,000 shares, acquired as follows: 500 shares on November 5, 2013, for $25 a share and 700 shares on April 5, 2014, for $30 a share. The Millers did not instruct their broker as to which shares to sell, so Form 1099–B for this sale reported $12,500 basis for these shares.

Explanation / Answer

To begin with, numbers don't add up. They owned 1,000 shares, they were acquired in lots of 500 and 700. That's 1,200 shares.

Not that this changes the answer. The rule is first in, first out. The first 500 acquired were sold. This is obvious if you compute the purchase price of those first 500 - 500 x $25 per share = $12,500. That is the cost basis, exactly as reported on the 1099-B. The other forms are not required.

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