Marianas holding period begins with the date the stoc

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or loss on a subsequent sale by Mariana. Mariana’s holding period begins with the date the stock was acquired by Zola. c. Gabriel acquires land for $75,000 on February 5, 2012. He transfers the land by gift to Gilmore on July 31, 2015 when the land is worth $50,000. Gilmore sells the land on August 31, 2015 for $48,000. Gilmore's holding period for the land begins on: July 31, 2015. The holding period begins on the date of the gift if Gilmore sells the land for a loss. The value of the land on the date of the gift is used in the determination of his basis for loss. If he sells the land for $48,000 on August 31, 2015, Gilmore has a $2,000 ($48,000 - $50,000) recognized capital loss and the holding period is from July 31, 2015, to August 31, 2015 (thus, the loss is short-term).Olivia wants to buy some vacant land for investment purposes. She cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years.At the time the option is purchased, the option is a capital asset for Olivia.Fourteen months after purchasing the option, Olivia sells the option for $10,000. She has a long-term capital gain of $2000 .
On May 9, 2015, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2015, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during the following 12-month period. Glenna receives a call premium of $750 for writing the call.If the call is exercised by the grantee on December 15, 2015, Glenna has a short-term capital gain of $2250 from the sale of the stock.Assume that the original option expired unexercised. Glenna has a short-term capital gain of $750Barbella purchased a wedding ring for $15 at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the Internet and discovered that it was worth at least $1,000. She sold it on an Internet auction site for $1,100 in July.Was the ring a capital asset? What were the amount and nature of the gain or loss from its sale byBarbella?
Faith Godwin is a dealer in securities. She has spotted a fast-rising company and would like to buy and hold its stock for investment. The stock is currently selling for $2 per share, and Faith thinks it will climb to $40 a share within two years. Faith's coworkers have told her that there is "no way" she can get long-term capital gain treatment when she purchases stock because she is a securities dealer. Faith has asked you to calculate her potential gain and tell her whether her coworkers are right.

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