Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset). The stock was acquired three years ago. He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
$\begin{array}{ll}
\text { Date}&\text { Amount}\
\text { March } 31 \text { of } 2009 & \$ 10,000 \
\text { July } 15 \text { of } 2009 & 10,000 \
\text { November } 15 \text { of } 2010 & 10,000 \
\text { January } 15 \text { of } 2010 & 10,000
\end{array}$
What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Question

Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset). The stock was acquired three years ago. He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
 $\begin{array}{ll}
\text { Date}&\text { Amount}\
\text { March } 31 \text { of } 2009 & \$ 10,000 \
\text { July } 15 \text { of } 2009 & 10,000 \
\text { November } 15 \text { of } 2010 & 10,000 \
\text { January } 15 \text { of } 2010 & 10,000
\end{array}$
 What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Quizplus · Accepted Answer

The Answer of Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset). The stock was acquired three years ago. He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
 $\begin{array}{ll}
\text { Date}&\text { Amount}\
\text { March } 31 \text { of } 2009 & \$ 10,000 \
\text { July } 15 \text { of } 2009 & 10,000 \
\text { November } 15 \text { of } 2010 & 10,000 \
\text { January } 15 \text { of } 2010 & 10,000
\end{array}$
 What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Jack Has a Basis of $36,000 in His 1,000 Shares