4. Investor owns 1,000,000 shares of stock of Corp. XYZ with a zero basis and...
60.1K
Verified Solution
Link Copied!
Question
Accounting
4. Investor owns 1,000,000 shares of stock of Corp. XYZ with a zero basis and a FMV of 100,000,000 that the investor has held for 20 years. The investor sells 1,000,000 shares of XYZ short for $100,000,000 in February, 2015. In July 2016 when the stock is worth $150,000,000, the investor buys 1,000,000 shares of XYZ for $150,000,000 and delivers it to close the short sale. In December, 2016 the investor sells the remaining 1,000,000 shares of XYZ for $200,000,000. What are the tax consequences in 2015 and 2016?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
