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:

Virginia

A state in the southeastern and mid-Atlantic regions of the United States, known for its significant historical contributions and role in American history.

English Civil War

A series of armed conflicts and political machinations between Parliamentarians ("Roundheads") and Royalists ("Cavaliers") in England in the mid-17th century over governance and civil liberties.

Consumer Goods

Products that are purchased for consumption by the average consumer, including durable goods, non-durable goods, and services.

Navigation Acts

A series of laws enacted by the British Parliament in the 17th century, aimed to tighten the government's control over trade between England, its colonies, and the rest of the world.