Phil and Susan Hammond are married taxpayers filing a joint return. The couple have two dependent children. Susan Hammond has wages of $34,000 in 2019. Phil does not work due to a disability, but he is a buyer and seller of stocks. He generally buys and holds for long-term gain but occasionally gets in and out of a stock quickly. The couple's 2019 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends. Date
Item Acquired Date Sold Cost Sales Price
Blue stock
(10 shares) 11/10/15 03/12/16 $3,000 $6,000
Purple stock
(100 shares) 12/13/14 05/23/16 36,000 32,000
Beige stock
(50 shares) 12/14/11 07/14/16 13,000 14,500
Red stock
(100 shares) 06/29/15 05/18/16 26,000 27,000
Black stock
(100 shares) 05/15/15 10/18/16 67,000 67,800
Gray stock
(100 shares) 04/23/14 10/18/16 89,000 $88,200
a. Determine the nature and amount of the gain or loss for each of the stock transactions.
b. Phil and Susan have a net short-term capital of $ and a net long-term capital of$. Consequently, there is an overall net of $. Phil's and Susan's AGI is $.
c. Complete a Form 8949 for the Hammonds (Philâs Social Security number is 123-45-6789). Assume that the stock sale information was reported to the Hammonds on a Form 1099âB and that basis information was provided to the IRS.