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Kevin bought 270 shares of Intel stock on January 1, 2022, for $78 per share, with a brokerage fee of $170. Then, Kevin sells all 270 shares for $89 per share on December 12, 2022. The brokerage fee on the sale was $220. What is the amount of the gain/loss Kevin must report on his 2022 tax return?

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Answer:

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Step-by-step explanation:

Absolutely, I can help you calculate Kevin's capital gain on the sale of Intel stock.

Here's a breakdown of the transaction:

Purchase

Price per share: $78

Number of shares: 270

Brokerage fee: $170

Sale

Price per share: $89

Number of shares: 270 (all shares purchased were sold)

Brokerage fee: $220

Calculating the gain/loss:

Total purchase cost:

(Price per share * Number of shares) + Brokerage fee

($78/share * 270 shares) + $170 = $21,590

Total sale proceeds:

(Price per share * Number of shares) - Brokerage fee

($89/share * 270 shares) - $220 = $24,330

Gain/loss:

Total sale proceeds - Total purchase cost

$24,330 - $21,590 = $2,740

Answer: Based on the calculations, Kevin earned a capital gain of $2,740 on the sale of Intel stock, which he must report on his 2022 tax return.

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