Mike,a dealer in securities and calendar-year taxpayer,purchased a security for inventory on November 18,2016 for $15,000.The FMV on December 31,2016 was $16,000.The security was sold on December 19,2017 for $16,500.These transactions result in
A) $0 ordinary income in 2016; $1,500 ordinary income in 2017.
B) $0 ordinary income in 2016; $1,500 LTCG in 2017.
C) $1,000 ordinary income in 2016; $500 LTCG in 2017.
D) $1,000 ordinary income in 2016; $500 ordinary income in 2017.
Correct Answer:
Verified
Q65: Joy purchased 200 shares of HiLo Mutual
Q65: All of the following are capital assets
Q70: Emma Grace acquires three machines for $80,000,which
Q71: Section 1221 of the Code includes a
Q71: In 2012,Regina purchased a home in Las
Q75: Which one of the following is a
Q77: Section 1221 specifically states that inventory or
Q78: Kate subdivides land held as an investment
Q79: Normally,a security dealer reports ordinary income on
Q572: Distinguish between the Corn Products doctrine and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents