In the current year, a taxpayer sold 100 shares of Tech Corp stock for $4,000. The taxpayer's basis in the stock was $5,000. Two weeks later, the taxpayer purchased 50 shares of Tech Corp stock for $2,200. What is the taxpayer's recognized loss on the sale and the basis of the new 50 shares?

Under IRC §1091 (Wash Sales), a loss is disallowed if substantially identical stock is purchased within 30 days. Here, 50 shares were repurchased, so the loss on 50 shares is disallowed. Realized loss per share = ($5,000 - $4,000)/100 = $10/share. Disallowed loss = 50 * $10 = $500. Recognized loss = $1,000 - $500 = $500. The basis of the new shares is Cost ($2,200) + Disallowed Loss ($500) = $2,700.