At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year (not a leap year). On the 219th day of the year, Ann sells her half of the Whitman stock to her son, Scott. How much of the $120,000 loss, if any, belongs to Scott?

Ms. Jones owns all of the shares of Jones Co. She has had the company valued and 50% of the shares are worth $100,000. She is going to sell to her husband 50% of her shares for $100,000 cash. She intends to report the gain on her tax return and have her husband pay tax on any dividends paid by the company. Does this work? Comment.

At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $34,000, including her $21,000 share of CYG debt. On January 1 of the current year, Cynthia sells her partnership interest to Roger for a cash payment of $24,500 and the assumption of her share of CYG's debt. CYG has no hot assets. What is the amount and character of Cynthia's recognized gain or loss on the sale? Multiple Choice $9,500 capital loss. $9,500 ordinary loss. $11,500 capital gain. $3,500 ordinary income.

Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2019. On December 31, 2022, she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2023, for $3,000. What is Ms. Fresh's recognized loss on her 2022 sale, and what is her basis in her 1,000 shares purchased in 2023?   a. $400 LTCL and $3,100 basis b. $0 LTCL and $3,500 basis c. $200 LTCL and $3,300 basis d. $500 LTCL and $3,000 basis e. $300 LTCL and $3,200 basis

In the current​ year, Dan​, Jay​, and Erin form Zeus Corporation. Dan contributes land​ (a capital​ asset) having a $75,000 FMV​ (fair market​ value) in exchange for 85 shares of Zeus stock. He purchased the land three years ago for $100,000. Jay contributes machinery​ (Sec. 1231 property purchased four years​ ago) having a $115,000 adjusted basis and a $45,000 FMV in exchange for 75 shares of Zeus stock. Erin contributes services worth $30,000 in exchange for 10 shares of Zeus stock. A. What is the amount of Dan​'s recognized gain or​ loss? b.What is Dan​'s basis in his Zeus ​shares? When does his holding period​ begin? c.What is the amount of Jay​'s recognized gain or​ loss? d. What is Jay​'s basis in his Zeus shares? When does his holding period​ begin? e.How much​ income, if​ any, does Erin ​recognize? f.What is Erin​'s basis in her Zeus ​shares? When does her holding period​ begin? g. What is Zeus​'s basis in the land and the​ machinery? When does its holding period​ begin? How…

Bev has significant taxable gain in 2021 that she is planning to include on her total income. She would like to sell her 2,000 shares of a public company that is currently at a loss. How much is the allowable capital loss if she purchased the 2,000 shares at $50 per share and wants to sell them at $35 per share? ___________

Ari owns 1,000 shares of ABC, Inc., for which she paid $18,000 several years ago. On March 15 of the current year, she purchases 400 additional shares for $5,000. Ari sells the original 1,000 shares for $13,500 on April 1 of the current year. These are her only stock transactions during the current year. Ari's capital loss deduction for the current year and her basis in the new shares are as follows: Capital loss        Basis Group of answer choices A)$3,000        $5,000 B)$2,700        $6,800 C)$4,500        $5,000 D)$3,000        $6,800 E)$2,700        $5,000

Deirdre sold 192 shares of stock to her brother, James, for $5,760. Deirdre purchased the stock several years ago for $7,680. (Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.) b. What amount of gain or loss does James recognize if he sells the stock for $8,064? Recognized gain or loss

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $445,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $311,500. According to market quotations, Bluebird stock is selling for $445 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $249,200. What is Kevin's recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming the shares sold are from the shares purchased on December 12, 2020? Kevin's recognized gain is $_______. (Side note: $41533.33 is wrong)

Stevie recently received 1,080 shares of restricted stock from her employer, Nicks Corporation, when the share price was $9 per share. Stevie's restricted shares vested three years later when the market price was $12. Stevie held the shares for a little more than a year and sold them when the market price was $15. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?