In August 2007, John Titus bought 200 shares of a listed stock for $25,000. In September 2007, Titus sold this stock for its fair market value of $28,000 to the partnership of Black, Blue, and Titus. Titus had a one-third interest in this partnership. In Titus' 2007 tax return, what amount should be reported as short-term capital gain as a result of this transaction?
Section 721(a) generally provides that no gain or loss shall be ...
The contribution of listed stock to Black, Blue and Titus Partnership is given. The short-term capital gain as a result of the transaction is determined.