Question

Kevin bought 235 shares of Intel stock on January 1, 2019, for $64 per share, with a brokerage fee of $135. Then, Kevin sells all 235 shares for $82 per share on December 12, 2019. The brokerage fee on the sale was $185. What is the amount of the gain/loss Kevin must report on his 2019 tax return

Answer 1

kevin has to report a gain of $3,910 on his tax return

Step-by-step explanation:

Since he bought 235 shares at $64 with a brokerage fee of $135. we have to calculate the total amount spent on buying.

= (235 × 64) + 135

= 15,040 + 135

= $15,175

We have to calculate the amount he made on sales. if 235 shares was sold at the rate of $82 with a brokerage fee of $185;

The Amount realized would be

= (235 × 82) - 185

= $19,270 - 185

= $19085

The gain is the difference between the total purchase price and the realized amount from sales.

Gain = $19,085 - $15,175

=$3,910

he has to report a gain of $3,910