Question

Where would this go on the 1040 or schedule D?

On September 15, 2018 John and Mary sold 400 shares of Greatstone stock which they had acquired on November 1, 2013. They sold the stock for $12,000 and had purchased it for $7,000. They also sold a vacant lot which they had acquired on June 2, 2000 at a cost of $32,000. They sold the lot for $42,000 on 10/1/18. They also sold 250 shs IBM stock on December 12, 2018 for $16,000; they had acquired this stock on December 20, 2017 for $10,000

Answer 1

Answer:

1)Sold 400 shares acquired in 2013 in 2018.

Asset is held for more than 1 year, hence, to be classified as long-term asset. Based on the disclosure made by the broker in form 1099b with basis or without basis, the transaction would appear in Part II schedule d of form 1040. It would go under 8b or 9 or 10 of part II if not under 8a.

This would result in gain to the tune of $5000(12000-7000)

2)Sold vacant land in 2018 for$ 42000 which was purchased in 2000 at a cost of $32000

Asset is held for more than 1 year, hence, to be classified as long-term asset. Based on the disclosure made by the broker in form 1099b with basis or without basis, the transaction would appear in Part II schedule d of form 1040. It would go under 8b or 9 or 10 of part II if not under 8a.

This would result in gain to the tune of $10000(42000-32000)

3)Sold 250 shares on December 12, 2018 for $16000 which was acquired on December 20, 2017 for $10000

The shares were held for less than one year, hence classified as short-term asset. Based on the disclosure made by the broker in form 1099b with basis or without basis, the transaction would appear in Part I schedule d of form 1040. It would go under 1b or 2 or 3 of part I if not under 1a.

This would result in gain to the tune of $6000(16000-10000).