Question

If you buy 200 shares of stock in a taxable account for​ $22,500 on October​ 1st, sell them for​ $18,000 on October​ 12th, and buy back 200 shares of the same stock on October 28th for​ $19,000, what would be your reportable tax​ loss?

Answer 1

Tax loss=$23500

Step-by-step explanation:

Total shares bought=Shares bought on 1st October+shares bought on October 28th October

Where;

Shares bought on 1st October=$22,500

Shares bought on October 28th October=$19,000

Replacing;

(22500+19000)=41500

Total shares bought=$41500

Total shares sold=shares sold on 12th October=$18,000

Tax loss=Total shares bought-Total shares sold

(41500-18000)=$23500

Tax loss=$23500