Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Holding Period

Case Study 4: Basis and Holding Period (cont.)

The scenario continues. Henry's adjusted basis for the 500 shares of ZZZ Corporation stock he purchased in May 2014 and then sold in 2024 was $2,550, and the holding period was long-term.

If Henry sold 500 shares for $3,300, then what was the sales price for the shares and the resulting gain or loss?

$3,300 sales price and $750 gain
$3,300 sales price and $705 gain
$3,255 sales price and $705 gain
$2,550 sales price and $705 loss


Henry.