1. On 3/10/20, J sold 300 shares of blue stock for $4200. J bought stock in 2015 for $5,000. On
4/4/20, he repurchased 300 shares of blue stock for $3,600 and held them until July 18,
2020 and sold them for $6,000. How to report?
Ans: LTCG (Long-term capital gain) $1,600.
2. A buys a house to use as a rental. Paid $ 100,000 cash plus $25,000 mortgage assumed plus
$500 title search plus $100 recording fees
Ans: $127,100
3. B buys a house for $200,000 and has expenses : $200 for fire insurance, $500 for mortgage
insurance, $400 for recording fees, $250 for owners title insurance?
Ans: 200,650
4. Z gave his son a rental house. Z’s basis was $71,000, FMV at transfer was $90,000. If son
sells at A gain, basis?
Ans: $71,000 Ans.
5. L gives his sister a rental house. L bought house for $60,000 and took $17,000 depreciation.
Just before transfer , L paid $5000 for a new roof. L Paid gift tax of $28,200 on the transfer.
FMV on date of transfer = $90,000. What is SISTERS BASIS?
Ans: $ 66,200
6. Y died, left his daughter a commercial rental property. He bought it for $150,000 and took
$45,000 depreciation. FMV at death was $200,000. Six months later , property re-titled into
daughter name by executor. No alternative valuation done but FMV on that day was
$210,000.
Ans: $200,000
7. H acquired land as a gift. FMV at gift = $20,000. Donor basis= $15,000, no gift tax paid,
nothing occurred to increase or decrease BASIS. H sold property for $10,000. Result?
Ans: $ 5000 less.
8. L’s father bought 1000 shares of stock $10 per share on December 30, 2020. L inherited the
stock on September 15, 2021. FMV at inheritance = $20 per share on December 20, 2021, L
sold stock for $25 per share? Gain?
Ans: $5000 long -term capital gain.