Reference no: EM132592910

Question 1. A taxpayer brings in a Form 1099-B showing the net proceeds from the sale of non-covered shares during 2019. What are all of the other items you need to know to report the transaction?

A. The date(s) the asset was acquired and the asset basis on the sale date.

B. Whether the taxpayer sold other shares of stock or mutual funds in 2019.

C. The basis of the asset on the sale date.

D. The purchase price paid for the securities.

Question 2. On January 17, 2019, Meredith purchased a put option for $250. The option expired on August 17, 2019. What should Meredith report on her 2019 return?

A. $250 of investment expense.

B. $250 of long-term capital gain.

C. $250 of short-term capital loss.

D. No gain, loss, or expense related to this transaction.