Carter owns 1,200 shares of Echo Corporation stock. He purchased 400 shares of the stock on December 23, 2009, for $48,000, and the other 800 shares on October 31, 2010, for $84,000. On August 14, 2011, he sells 500 shares of the stock for $15,000 and pays a $900 commission on the sale.

Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.