Jethro, age 55, is married with no children. During the year, Jethro had the fol
ID: 2452490 • Letter: J
Question
Jethro, age 55, is married with no children. During the year, Jethro had the following income and expense items:
In April last year, he purchased some Alpha Corporation stock for $5,000. In March of this year, Alpha Corporation was declared bankrupt and Jethro was notified that his shares of stock are worthless.
Several years ago, Jethro purchased some qualified small business stock for $120,000. This year, he sold the stock for $70,000.
In July of this year, Jethro sold some land he has held for two years. He had paid $42,000 for the land and sold it for $60,000.
In September, Jethro’s home was damaged by an earthquake. His basis in his home is $430,000. The value of the home immediately before the quake was $610,000. After the earthquake, the home is worth $530,000. Because the quake was an excluded item on his homeowner’s insurance policy, he received no insurance payment.
Jethro owned 100 shares of Magenta Corporation stock with an adjusted basis of $15,000. On December 15, 2014, he sold the stock for $12,000. On January 5, 2015, he purchased 150 shares of Magenta stock for $12,750. Then on December 30, 2015, he sold all 150 shares for $14,000.
Jethro had itemized deductions (not including any item above) of $15,000.
Jethro has salary of $90,000.
Jethro, age 55, is married with no children. During the year, Jethro had the following income and expense items:
In April last year, he purchased some Alpha Corporation stock for $5,000. In March of this year, Alpha Corporation was declared bankrupt and Jethro was notified that his shares of stock are worthless.
Several years ago, Jethro purchased some qualified small business stock for $120,000. This year, he sold the stock for $70,000.
In July of this year, Jethro sold some land he has held for two years. He had paid $42,000 for the land and sold it for $60,000.
In September, Jethro’s home was damaged by an earthquake. His basis in his home is $430,000. The value of the home immediately before the quake was $610,000. After the earthquake, the home is worth $530,000. Because the quake was an excluded item on his homeowner’s insurance policy, he received no insurance payment.
Jethro owned 100 shares of Magenta Corporation stock with an adjusted basis of $15,000. On December 15, 2014, he sold the stock for $12,000. On January 5, 2015, he purchased 150 shares of Magenta stock for $12,750. Then on December 30, 2015, he sold all 150 shares for $14,000.
Jethro had itemized deductions (not including any item above) of $15,000.
Jethro has salary of $90,000.
Explanation / Answer
Jethro, age 55, is married with no children. During the year, Jethro had the fol
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