Darnell, Who Is Single, Exchanges Property Having a $60,000 Adjusted

question 89

Essay

Darnell, who is single, exchanges property having a $60,000 adjusted basis and a $50,000 FMV for 1,000 shares of Fox Corporation stock in a transaction qualifying under Sec. 351. The stock qualifies as Sec. 1244 stock. If Darnell sells his stock for $30,000, what is the amount and character of his recognized gain or loss?

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Definitions:

Tailgating

A breach of physical security that occurs when an unauthorized person enters a secure space behind an authorized person. Training and diligence by all employees are the only ways to stop tailgating.

Mantrap

A method of separating a nonsecure area from a secure area to prevent unauthorized access and tailgating.

Computer Cage

A secure and protective enclosure designed to house and safeguard computer hardware components, typically used in server and professional computing environments.

Shoulder Surfing

Someone behind you looking at what you type or what is on the screen to glean unauthorized information.