Interview Notes
Steven sold some stock in 2014, and has come to you to prepare his tax return .
ABC stock:
- Steven purchased 100 shares of ABC stock for $5,000, including commissions, on November 7, 2005 .
• Steven sold 25 shares of ABC on July 1, 2014 . His Form 1099-B shows sales price, less commissions, of $2,000 . The basis is not provided on Form 1099-B .
XYZ stock:
- On March 15, 2014, Steven sold 150 shares of XYZ stock, which he purchased in 1998 .
- Steven does not know the basis for his XYZ stock, and the basis is not shown on the Form 1099-B he received from the broker .
PSA mutual fund:
- On October 7, 2013, Steven purchased 1,000 shares of the PSA mutual fund for $7,500 .
• On March 7, 2014, the fund paid a capital gain distribution of $200 that was rein- vested to purchase an additional 20 shares .
• Steven received Form 1099-DIV reporting the capital gain distribution . He also received a year-end statement showing $10,500 as the December 31, 2014, value of his 1,020 shares .
1. What is the basis of the 25 shares of the ABC stock that Steven sold in 2014?
a . $250 b . $1,250 c . $2,500 d . $5,000
2. What is the total basis of all Steven's PSA mutual fund shares held on December 31, 2014?
a . $200 b . $7,500 c . $7,700 d . $10,500
3. Go to: https://www.irs.gov/pub/irs-pdf/f6744.pdf
Then advanced scenario 7 (use the information that is on this site above)
#21, #22
3. Use the same site mentioned above and go to advanced scenario nine And do problems 38,39