Bryce, a bank official, is 40 years old, unmarried and has
no dependents. During 2019 he engages in the following activities and
transactions:
a. Being an avid fisherman, Bryce develops an expertise in
tying flies. Ar rimes during the year, he is asked to conduct fly-eying
demonstrations, for which he is paid a small fee. He also periodically sells
flies char he makes. Income generated from these activities during the year is
$2,500. The expenses for the year associated with Bryce’s fly-eying activity
include $125 personal property taxes on a small trailer that he uses
exclusively for chis purpose, $2,900 in supplies, $270 in repairs on the
trailer, and $200 in gasoline for traveling to the demonstrations.
b. Bryce sells a small building lot to his brother for
$40,000. Bryce purchased the lot four years ago for $47,000, hoping to make a
profit.
c. Bryce enters into the following stock transactions: (None
of the stock qualifies as small business stock.)
d. Bryce’s salary for the year is $100,000. In addition to
the items above, he makes $5,000 charitable contributions and pays $4,800 of
state income tax. Determine the following:
1. Bryce’s taxable income for 2019.
2. Bryce’s basis in the Silver stock he continues to own.
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