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:
Date Amount
March 31 of 2017 $10,000
July 15 of 2017 10,000
November 15 of 2018 10,000
January 15 of 2018 10,000
What are the amount and character of the gain or loss that Jack will recognize during 2017? During 2018?

Question

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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:
Date Amount
March 31 of 2017 $10,000
July 15 of 2017 10,000
November 15 of 2018 10,000
January 15 of 2018 10,000
What are the amount and character of the gain or loss that Jack will recognize during 2017? During 2018?

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