During the year, Alvin (a high-income taxpayer) had four property transactions s
ID: 2545157 • Letter: D
Question
During the year, Alvin (a high-income taxpayer) had four property transactions summarized below. Alvin is a collector of antique (collectible) automobiles and occasionally sells one to get funds to buy another automobile. What are the amount and character of the gain or loss from each of these transactions?
Property
Date Acquired
Date Sold
Sale Price
Adjusted Basis
Additional Information
Antique Car
8/08/03
6/28/17
$ 40,000
$ 52,000
Fidelity
Growth Fund
3/10/03
7/31/17
$ 36,000
$ 17,000
(150 Shares)
Butler Bonds
05/18/07
8/28/17
$ 51,000
$ 42,000
(Includes $500 of
accrued interest income)
Blue Co. Stock
03/15/17
12/24/17
$ 8,000
$ 14,000
(150 shares)
Property
Date Acquired
Date Sold
Sale Price
Adjusted Basis
Additional Information
Antique Car
8/08/03
6/28/17
$ 40,000
$ 52,000
Fidelity
Growth Fund
3/10/03
7/31/17
$ 36,000
$ 17,000
(150 Shares)
Butler Bonds
05/18/07
8/28/17
$ 51,000
$ 42,000
(Includes $500 of
accrued interest income)
Blue Co. Stock
03/15/17
12/24/17
$ 8,000
$ 14,000
(150 shares)
Explanation / Answer
Statement Showing claculation of Gain/Loss from each of the transaction S. No. Property Nature of Asset Sales price Adjusted Basis Gain/(Loss) Character of Gain/Loss Other Remark 1 Antique Car Long Term Asset $40,000 $52,000 -$12,000 Long Term Loss 2 Fidelity Growth Fund Long Term Asset $36,000 $17,000 $19,000 Long Term Gain 3 Butler Bonds Long Term Asset $51,000 $41,500 $9,500 Long Term Gain Adjusted Basis= $4200-$500) 4 Blue Co. Stock Short Term Asset $8,000 $14,000 -$6,000 Short Term Capital Loss
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