If a Taxpayer Cannot Specifically Identify Which Shares of Stock

question 38

True/False

If a taxpayer cannot specifically identify which shares of stock were sold,the average cost of all shares held is used as the adjusted basis of the shares that were sold.

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Definitions:

Exculpatory Clause

A part of a contractual agreement that releases one party from liability for wrongful actions or damages.

Minor

A person under the legal age of adulthood, which varies by jurisdiction but is commonly 18 years old.

Contract Disaffirmance

The act of rejecting or declaring a contract void, often used in cases where one of the parties was incapacitated or a minor at the time of agreement.

Affirmed

A legal term used when a higher court has confirmed or upheld the decision of a lower court.