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:

Marital Status

A legal or social acknowledgment of a person's current relationship status, commonly categorized as married, single, divorced, or widowed.

Résumé

A brief document that outlines a person's education, qualifications, work experience, and skills, typically used for job applications.

Follow-Up Letter

A written communication sent to reiterate interest or remind an individual or organization of a prior interaction, often after a meeting or interview.

Reiteration

The restatement or repetition of information for emphasis or clarity.