I just got out from REG and had 2 tricky simulations.
1. I had to calculate LTCL, LTCG, STCG, and STCL based on the questions provided.
The questions were like
“Sold land for $60,000 (deducted sales commission is 3%). The basis is $15,000.”
—-> Do I have to include sales commission fee to the selling price?
2. C-corporation liquidating problem.
Each shareholders’ basis was provided.
E&P of the current year was also given.
—-> Should pro-rata E&P be allocated to each shareholders’ basis to calculate their liquidation gains or losses?