Question

Kevin bought 285 shares of Intel stock on January 1, 2019, for $84 per share, with a brokerage fee of $185. Then, Kevin sells all 285 shares for $92 per share on December 12, 2019. The brokerage fee on the sale was $235. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

Answer 1

Answer:

=$1,842

Explanation:

et gain or loss from the sale of shares will be the total cost of purchasing the shares minus the amount realized from selling the shares.

The total cost of purchases ( adjusted basis) cost price  x shares quantity + brokerage fee

=(285 shares x $84 ) + $185

=$23,940 +$185

=$24,125

The net amount realized from the sale

=selling price multiplied by shares minus brokerage fee

=($285 X 92) - $235

=26,220 - 253

=$25,967

=Gain or loss

= $25,967- $24,125

=$1,842