Question

I need a Form 8949 2018

TAX FORM/RETURN PREPARATION PROBLEMS Short Tax Form. Given the following information for Jane Cole, complete Schedule Dof Form 1040 through Part III. • Stock options, which she purchases on February 14 of the current year for $850, ex- pire on October 1. • On July 1, she sells for $4,500 her personal-use automobile acquired on March 31, 2011, for $18,000. • On August 16, she sells for $3,100 her stock of York Corporation purchased as an investment on February 16, for $1,600. • On March 15, she sells for $5,600 an antique ring, a gift from her grandmother on January 10, 2005, when its FMV was $1,600. The ring was purchased by her grand- mother on April 2, 1979, for $1,800. • She has an STCL carryover of $250 from last year.

Answer 1

will be explaining the detail treatment of transaction in given question as it should be treated in form 8949 (2018)

a) Stock Option purchased on feb 14 of current year for $ 850 , as the option to exercise is expired on oct 1st ,

stock option expire means when a person buy or sell the stocks and unexercised the option of price  to buy or sell on particular date and led to expire the date of options , this means person stock options doesnot reach the excercise price and which led stock dolder to expire the date of options .

As per federal income tax rules the money spent on purchase of stock options will be treated as capital loss, if stock is hold for less than a year then it is called short term otherwise for more than a year its called long term

In this case option date to exercise is expired on oct 1st whereas they wer purchased on feb 14 , as per federal tax laws and 8949 pubilication of irs its short term loss of $850.

so short loss of $850 can be taken by submitting details in form 8949 of schedule D

b) vechicle purechased for $ 18000 in 2011 and sold for $4500 on july 1 , as asset is kept for more than a year .

its a long Term Loss , but as per federal tax rules Loss generated from sale of personal used vechicles as per irs pubilication is not to reported for claiming loss in form 8949

so long term loss by sale of personal used vechicles is not allowed .

c) feb 16 purchased $1600 stocks and sold for $3100 on aug 16 , this is short term transaction as its sold in with in a year

short term capital gain = $3100-$1600

= $ 1500

d) on march 15 sold antique ring for $ 5600 , gift recieved from grand mother in 2005 which has Fmv =$1600

and grandmother purchased on april 2 a1979 for $ 1800

so its a long term gain as asset is hold for more than a year and as per the treatment of inherited property pubilication of irs , property held for more then 2 year the cost of acquistion is treated as FMV so

In this cas Fmv = purcahse price

LOng term capital Gain = 5600-1600 =

=$ 4000

Format of form 8949 2018

short term CApital / gain
Description of property	purechase	sale	Capital GAin	CApital Loss($)
a) stock option	850	0		850
c)sale of stock	1600	3100	1500

Total short term loss / gain ( 1500-850)

short term gain =650

Less adjustment of Stcl of last year =$250

Net Short term capital gain =650-250

= $400

LongCApital / gain
Description of property	purechase	sale	Capital GAin	CApital Loss($)
d Inherited property	1600	5600	4000
Total long capital gain			4000