I want you to do itCourse Project SolutionsDescriptionProcee

I want you to do itCourse Project SolutionsDescriptionProceedsCost BasisGain (Loss)Short-TermLong-TermCommentsInherited Stock  35,000  29,000Inherited – so date of death FMVStock  3,200  6,000Land (1)  147,000You have to calculate the cost basis – see 1 and 1a belowStock  1,725  1,350Stock  9,200  10,000Bond (2)  95,949You have to calculate the basis, see 2 below(1)Amount realizedMinus: basis (1a)Gain Realized  – [1a]$85,000Original purchase price of property, paid by James’s Uncle$5,000Gift tax paid at time of giftInclude all of the gift tax to get your basis$125,000FMV of property at time of gift$115,000Amount of gift (equals the FMV of property less the exclusion amount.(2)Interest AmortizationInterest Basis ofReceivedof OIDIncomeBond1/1/2009  92,7776/30/200912/31/20096/30/2010Look at my OID example spreadsheet for assistance on how to calculate this. Complete this section after you have finished the top section. Net Short-Term Capital GainNet Long-Term Capital GainShort-term Capital Loss Carryforward  8,000(Carried forward from prior year)Capital Gain to be ReportedCapital Loss Carryforward0

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