Kevin bought 210 shares of Intel stock on January 1, 2019, for $54 per share, with a brokerage fee of $110. Then, Kevin sells all 210 shares for $77 per share on December 12, 2019. The brokerage fee on the sale was $160. What is the amount of the gain/loss Kevin must report on his 2019 tax return?

$4,560

Explanation:

With regards to the above information, we need to calculate first the amount realized on the sales of the shares.

Amount realised = [Shares purchased × Price per unit of shares sold] - Brokerage fee on the sale of the shares

= [210 × $77] - $160

= $16,010

We also need to calculate the adjusted basis.

Adjusted basis = [Shares purchased × Price per unit of shares purchased] + brokerage fee on the shares purchased.

= [210 × $54] + $110

= $11,450

Gain = Amount realized - Adjusted basis

Gain = $16,010 - $11,450

Gain = $4,560

Therefore, the amount of gain Kevin must report on his 2019 tax report is $4,560