Question: C - 1 0 . Jayda, a tax professional from California, assists Bella in filing her income tax return. Bella sold investment stock that she

C-10. Jayda, a tax professional from California, assists Bella in filing her income tax return. Bella sold investment stock that she held for two years, and believes that the proceeds should be considered as a return of capital, and thus not reported in her tax return. However, after conducting research, Jayda concludes that Bellas position has no reasonable basis, and she is unsure if there is any realistic possibility of success based on those merits. In what situations would Jayda be able to sign Bellas return?

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