Wash Sales. John Broward owns 1,500 shares of Silver Fox
Corporation common stock. John purchased the 1,500 shares on April 17, 2011,
for $21,000 . On December 8, 2018, John sells 750 shares for $5,000. On Januar
y 2, 2019, John buys 250 shares of Silver Fox Corporation common stock for
$1,750 and 50 shares of Silver Fox Corporation preferred stock for $1,000 . The
preferred stock is nonvoting, nonconvertible.
a. What is John ‘s realized and recognized loss on the
December 8 sale of stock?
b. What is his basis and the holding periods of the shares
purchased in 2011 and in 2018?
Leave a Reply