Ms. Glantz owns all 100 shares of Remsen Company. These shares were all acquired

Question

Ms. Glantz owns all 100 shares of Remsen Company. These shares were all acquired on February 18, 2008. Ms. Glantz’s basis in the stock is $20,000. Remsen Company adopted a plan of complete liquidation and distributed $56,000 to Ms. Glantz. Ms. Glantz received $16,000 in 2016 and $40,000 in 2017. How much gain or loss is recognized by Ms. Glantz in 2016 and 2017? A. $4,000 loss in 2016 and $40,000 gain in 2017. B. No gain or loss in 2016 and $36,000 gain in 2017. C. No gain or loss in 2016 and $40,000 gain in 2017. D. $4,000 loss in 2016 and $44,000 gain in 2017. Ms. Glantz owns all 100 shares of Remsen Company. These shares were all acquired on February 18, 2008. Ms. Glantz’s basis in the stock is $20,000. Remsen Company adopted a plan of complete liquidation and distributed $56,000 to Ms. Glantz. Ms. Glantz received $16,000 in 2016 and $40,000 in 2017. How much gain or loss is recognized by Ms. Glantz in 2016 and 2017? A. $4,000 loss in 2016 and $40,000 gain in 2017. B. No gain or loss in 2016 and $36,000 gain in 2017. C. No gain or loss in 2016 and $40,000 gain in 2017. D. $4,000 loss in 2016 and $44,000 gain in 2017.

Explanation / Answer

B) no gain or loss in 2016 and $36,000 gain in 2017

Loss is generally not recognised until final distribution is recieved.

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