Identify the relevant tax issues for Kelly

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Problem - Kelly decided to invest in Lime, Inc. common stock after reviewing Lime's public disclosures, including recent financial statements and a number of press releases issued by Lime. On August 7, 2017, Kelly purchased 60,000 shares of Lime for $210,000. In May 2018, Lime entered into a joint venture with Cherry, Inc. In November 2018, the joint venture failed, and Lime's stock began to decline in value. In December 2018, Cherry filed a lawsuit against Lime for theft of corporate opportunity and breach of fiduciary responsibility. In February 2019, Lime filed a countersuit against Cherry for fraud and misappropriation of funds. At the end of December 2019, Kelly's stock in Lime was worth $15,000. Identify the relevant tax issues for Kelly.

Reference no: EM132667299

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