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Christina, who is single, purchased 100 shares of Apple Inc. stock several years ago for $3,500. During her year end tax planning, she decided to sell 50 shares of Apple for $1,500 on December 30. However, two weeks later, Apple introduced the iPhone 5, and she decided that she should buy the 50 shares (cost of $1,600) of Apple back before prices skyrocket. |
| a. |
What is Christina’s deductible loss on the sale of 50 shares? What is her basis in the 50 new shares? |
| b. |
Assume the same facts, except that Christina repurchased only 25 shares for $800. What is Christina’s deductible loss on the sale of 50 shares? What is her basis in the 25 new shares? |