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Question - As the end of the year was approaching, Quinn reviewed his stock portfolio and decided to sell his holdings in General Corp. on December 28th of Year 1. The shares were purchased two years ago. His basis in the shares was $40,000 and the market value of the shares was $38,000. Quinn wanted to use the $2,000 loss to help him minimize taxes for Year 1. On January 10th, Year 2, General Corp. announced new initiatives, and Quinn has second guessed his decision to sell the shares in the company. He buyback the 1,000 shares for $37,000 on January 11th. Assuming that Quinn had no other capital transactions for Year 1, what is his basis in the shares after he buys them back on January 11th?
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