Bryce, a bank official, is 40 years old, unmarried and has no dependents. During 2023 he engages in the following activities and transactions:

a. Being an avid fisherman, Bryce develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a small fee.

He also periodically sells flies that he makes. Income generated from these activities during the year is \($2,500.\) The expenses for the year associated with Bryce’s fly-tying activity include \($125\) personal property taxes on a small trailer that he uses exclusively for this purpose, \($2,900\) in supplies, \($270\) in repairs on the trailer, and \($200\) in gasoline for traveling to the demonstrations.

b. Bryce sells a small building lot to his brother for \($40,000.\) Bryce purchased the lot four years ago for \($47,000,\) hoping to make a profit.

c. Bryce enters into the following stock transactions: (None of the stock qualifies as small business stock.)

Transcribed Image Text:

Date March 22 April 5 April 15 May 20 Transaction Purchases 100 shares of Silver Corporation common stock for $2,800. Sells 200 shares of Gold Corporation common stock for $8,000. The stock was originally purchased two years ago for $5,000. Sells 200 shares of Silver Corporation common stock for $5,400. The stock was originally purchased three years ago for $9,400. Sells 100 shares of United Corporation common stock for $12,000. The stock was originally purchased five years ago for $7,000.