Question

Kevin bought 205 shares of Intel stock on January 1, 2020, for $52 per share, with a brokerage fee of $105. Then, Kevin sells all 205 shares for $76 per share on December 12, 2020. The brokerage fee on the sale was $155. What is the amount of the gain/loss Kevin must report on his 2020 tax return

Answer 1

Answer: $4660

Explanation:

Firstly, we need to calculate the amount that Kevin realized on the shares which will be:

= (205 × $76) - $155

= $15580 - $155

= $15425

The purchase value will be calculated as:

= (205 × $52) + $105

= $10660 + $105

= $10765

Therefore, the gain that Kevin must report on his 2020 tax return will be:

= $15425 - $10765

= $4660