Kevin bought 200 shares of Intel stock on January 1, 2016 for $50 per share with a brokerage fee of $100. Then, Kevin sells all 200 shares for $75 per share on December 12, 2016. The brokerage fee on the sale was $150. What is the amount of the gain/loss Kevin must report on his 2016 tax return?

Question

Quizplus · Accepted Answer

Amount Realized = (200 shares × $75) - $150 = $14,850; Adjusted Basis = (200 shares × $50) + $100 = $10,100; Gain = $14,850 - $10,100 = $4,750

Kevin Bought 200 Shares of Intel Stock on January 1