1)W inherited stock when her father died in 2019

1)W inherited stock when her father died in 2019. Her father purchased the stock several years ago for $30,000. The stock was worth $80,000 when her father died. W sold the stock for $100,000 in 2020. How much gain, if any, should W report on her 2020 tax return?

2)N received stock as a gift from her mother in 2019. Her mother purchased the stock several years ago for $30,000. The stock was worth $80,000 at the time the gift was received. N sold the stock for $100,000 in 2020. How much gain, if any, should N report on her 2020 tax return?

3)Y received stock as a gift from her father in 2019. Her father purchased the stock several years ago of $30,000. The stock was worth $20,000 at the time the gift was received. Y sold the stock for $18,000 in 2020.

How much gain or loss, if any, should Y report on her 2020 tax return?

Assume the same facts as above, except that Y sold the stock for $25,000. How much gain or loss, if any, should Y report on her 2020 tax return?

4. M sold investment real estate to B in 2020 for $100,000. M purchased the property 5 years ago for $60,000. The terms of the sale indicated that B was to pay $20,000 to M in 2020, $50,000 in 2021, and the remaining balance of $30,000 in 2022. M elected to use the installment method to report the gain. Assuming the payments are made as agree upon, how much gain should M report for each year?

2020

2021

2022

5. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

How much of the loss may C deduct on his 2020 return?

What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

6. P acquired HHH stock at various times and at various prices over the past three years as shown below. P sold 100 shares of HHH stock for $20,000 in 2020, but he cannot identify the particular shares that were sold. How much gain must P report on the sale?

P bought 50 shares of HHH stock in 2014 for $3,000.

In 2016 P bought 100 shares of HHH stock for $5,000

In 2018 P bought 200 shares of HHH stock for $9,000

In 2019 P bought 100 shares of HHH stock for $4,500