Ms. Ellis sold 889 shares of publicly traded Omer stock (tax basis $161,400) for $125,000 cash on July 2. She paid $136,200 cash to purchase 900 Omer shares on August 8. Compute Ms. Ellis' loss recognized on the July 2 sale and determine her tax basis in the 1,000 shares.

Question

Quizplus · Accepted Answer

The loss recognized on the July 2 sale is $36,400 ($161,400 - $125,000). The tax basis in the 1,000 shares is $136,200 ($125,000 + $136,200).

Ms Ellis Sold 889 Shares of Publicly Traded Omer Stock