Question

Kevin bought 290 shares of Intel stock on January 1, 2019, for $86 per share, with a brokerage fee of $190. Then, Kevin sells all 290 shares for $93 per share on December 12, 2019. The brokerage fee on the sale was $240. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

Answer 1

Gain $1,600

Step-by-step explanation:

Amount Realized = (290 shares × $93) − $240

=$26,970-$240

= $26,730

Adjusted Basis = (290 shares × $86) + $190

=$24,940+$190

= $25,130

Gain = $26,730 − $25,130

= $1,600

Therefore the amount of the gain/loss Kevin must report on his 2019 tax return will be $1,600