How would this information be entered on form 8949 and Schedule D On June 20, 20
ID: 2534382 • Letter: H
Question
How would this information be entered on form 8949 and Schedule D
On June 20, 2017, the Davis’ sold their Klor Inc. stock for $8,980. Phil and Jannie had received this stock as a gift from Jannie’s dad on November 25, 2010 when its fair market value was $7,776 (no gift tax was paid). Jannie’s Dad had purchased the stock on January 14, 1993 for $8,640.
On 9/10/16, Jannie purchased 2000 shares of Weasel Corp. stock for $2,600. The company had declared bankruptcy in 2016, and didn’t make it; they officially went out of business on 8/15/17.
Jannie also sold 1000 shares of Techno Inc. stock on 12/01/17 for $520. Jannie had purchased the stock on 10/18/06 for $5,680. Techno qualifies as a §1244 corporation.
Phil purchased 800 shares of Zagnut Corp. on November 7, 208 for $14,000; he received an additional 80 shares as a nontaxable 10% stock dividend on February 12, 2016 (when the market price was $27 per share), and sold those 80 shares on February 13, 2017 for $1,900; he also sold 200 of the original 800 shares on Nov. 12, 2017 for $6,000.
Explanation / Answer
Information to be entered on Form 8949 and Schedule D:
Date
Particulars
Amount ($)
Amount ($)
20-06-17
Sale proceeds from stock of Klor Inc.
8,980.00
Less: Cost basis
Nil
Long term capital gain
8,980.00
01-12-17
Sale proceeds from sale of 1000 shares of Techno Inc.
520.00
Less: Cost basis
5,680.00
Long term capital loss
(5,160.00)
13-02-17
Sale proceeds of 80 shares of Zagnut
1,900.00
Less: Cost basis (80 x 27)
2,160.00
Long term capital loss
(260.00)
Net long term capital gain
3,560.00
Date
Particulars
Amount ($)
Amount ($)
15-08-16
Short term capital loss
Cost price of 2000 shares of Weasel Corp. as the company dissolved
(2,600.00)
Net short term capital loss
(2,600.00)
Date
Particulars
Amount ($)
Amount ($)
20-06-17
Sale proceeds from stock of Klor Inc.
8,980.00
Less: Cost basis
Nil
Long term capital gain
8,980.00
01-12-17
Sale proceeds from sale of 1000 shares of Techno Inc.
520.00
Less: Cost basis
5,680.00
Long term capital loss
(5,160.00)
13-02-17
Sale proceeds of 80 shares of Zagnut
1,900.00
Less: Cost basis (80 x 27)
2,160.00
Long term capital loss
(260.00)
Net long term capital gain
3,560.00
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