Mr.Quick sold marketable securities with a $112,900 tax basis to his son for $95,000 cash.Two years later,the son sold the securities through his broker for $90,000.Compute the son's loss recognized on sale.

Question

Quizplus · Accepted Answer

The son's loss recognized on sale is $5,000, calculated as the difference between the selling price ($90,000) and the purchase price ($95,000). The father's tax basis does not affect the son's recognized loss.

MrQuick Sold Marketable Securities with a $112,900 Tax Basis to His