Answer:
1,000 long-term capital loss
new shares basis $7,000
Explanation:
The sales realize a long term loss for 1,000 dollar
It is long term as the shares were held for a period of time over 2 years
and is a loss as these shares were bought at 10,000 while sold at 9,000
The new share basis will be of 7,000 as it is the value ofthe new purchase.
Answer:
Explanation:
Given:
Number of shares = 1000 shares
Cost price = $10000
Selling price = $9000
In 2020,
Number of shares = 1000 shares
Cost price = $7000
Loss in dollars = cost price- selling price
= $10000 - $9000
= $1000
B.
Cost basis = (recent purchase of shares)/number of shares
= ($7000)/1000
= $7 per shares
