Question

Kevin bought 300 shares of Intel stock on January 1, 2019, for $90 per share, with a brokerage fee of $200. Then, Kevin sells all 300 shares for $95 per share on December 12, 2019. The brokerage fee on the sale was $250. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

Answer 1

$27,200

Step-by-step explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

Kevin's basis = (300 shares x $90 per share) + $200 in sales commission

Kevin's basis = $27,000 + $200 = $27,200

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