If the shares of stock that doug owns go up in value from $10,000 to $15,000 then dougs wealth

Building wealth is cool.

That's a mantra of Modern Blk Girl, a community aimed at teaching Black women the importance of investing and wealth creation that was founded by Tiffany James when she was just 25.

Like most newly minted college graduates, James had student loan debt and was living just barely within her means when a coworker suggested she use one paycheck to buy stock in Tesla in2019 when shares were $60 to $70 each.

"That was my first real taste of investing," she said.

Tiffany James

Source: Tiffany James

Since then, James, now 27, turned her initial investment of around $10,000 into more than $2 million by adding a mix of long-term growth companies, S&P SPDR exchange-traded funds and semiconductor chip stocks among other investments (she still owns some Tesla).

But James, the daughter of Jamaican and Haitian immigrants, continues to see herself as an outsider in a world of mostly white men with "fancy degrees."

"For people of color, it was something that wasn't talked about," she said of investing. "It's very intimidating, it has its own unique language and if you're not privy to that language it can be very difficult to understand."

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In fact, the stock market was the main source of wealth creation in America during the pandemic — as well as the main driver of wealth inequality.

The wealthiest 10% of American households now own 89% of all U.S. stocks, a record high, according to data from the Federal Reserve.

Nearly 70% of their wealth gains over the past two years — one of the fastest wealth booms in recent history — came from stocks.

Millions of new investors came into the market for the first time during the pandemic (thanks, in part, to stock-trading apps like Robinhood), and yet 59% of Black women and 48% of Hispanic women don't own individual stocks, mutual funds, bonds, exchange-traded funds, cryptocurrency or real estate, compared to 34% of white women and 23% of white men, according to a recent CNBC/Momentive Invest in You survey.

James and a group of other millennial women aim to change that with practical investing advice spoken in a way that's engaging and accessible — what James likes to call "girlfriend talk but learning stocks."

"You have people like myself to let you know 'hey, this is what's possible.'"

You have people like myself to let you know 'hey, this is what's possible.'

Tiffany James

founder of Modern Blk Girl

Her approach is catching on — quickly. Now with a community of more than 225,000 (mostly) women, James considers herself "a retail trader with a bird's eye view" at a time she calls "a wealth renaissance."

The advice doesn't come for free — classes, including "1k to 100,000K in 1 yr" start at just under $100 and a monthly subscription is $130, although there is introductory content available at no cost.

But James is also happy to share what she knows with other women.

"If you educate a woman, you educate a village," she said. "If a mom starts investing, she tells her kids."

Here are her three key strategies for getting started:

1. Get ready

Although the war in Ukraine, inflation and rising fuel prices are rattling markets, the best days are not necessarily over, James said.

"Every time you go through traumatic events, there's usually a rebound."

However, it's important to learn some "technicals" to identify key levels of support and resistance and focus on companies with sound fundamentals — then look for opportunities to buy. 

Amazon's upcoming 20-for-1 stock split, for instance, could be a chance to get some affordable shares of the retail giant.

2. Think broadly

Don't just stick to the names you know. For example, if you love Apple, go deeper, James said.

There are other components that go into the building of some of your favorite products, such as smartphones. "Chips are great," James said.

An ongoing supply crunch for semiconductors has hurt the consumer electronics industry but things could improve in the second half of the year.

3. Don't be afraid

"There are scarier things we deal with every day as women," James said.

To build wealth, "investing is a necessity not an option," she said, and making money in the market will open doors to greater financial freedom and independence to do what you want.

"We can live the lives we want to live."

Problem 5-35
During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a FMV of $310,000. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property April 12, 1980 for $110,000. At the time of the gift, Maxine paid a gift tax of $12,000. In order to sell the property, Stan paid a sales commission of $16,000.
A. What is Stan's realized gain on the sale?
B. How would your answer to part a change, if at all, if the FMV of the gift property was $85,000 as of the date of the gift?

Problem 5-36
Bud received 200 shares of Georgia Corporation stock from his uncle as a gift on July 20, 2017 when the stock had a $45,000 FMV. His uncle paid $30,000 for the stock on April 12, 2002. The taxable gift was $45,000 because his uncle made another gift to Bud for $20,000 in January and used the annual exclusion. The uncle paid a gift tax of $1,500. Without considering the transactions below, Bud's AGI is $45,000 in 2018. No other transactions involving capital assets occur during the year. Analyze each transaction below, independent of the others, and determine Bud's AGI in each case.
A. He sells the stock on October 12, 2018 for $48,000
B. He sells the stock on October 12, 2018 for $28,000
C. He sells the stock on December 16, 2018 for $42,000

Problem 5-38
Daniel receives 400 shares of AM corporation stock from his aunt on May 20, 2018 as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2008 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2018 and used the annual exclusion. She paid a gift tax of $9,300 on the gift of Am stock to Daniel.
Daniel also inherited 300 shares of longhorn corp preferred stock when his uncle died on November 12, 2017, when the stock's FMV was $30,000. His uncle purchased the stock in 1996 for $27,600. Determine the gain or loss on the sale of AM and Longhorn stock on December 15, 2018 under the alternative situations
A. AM stock was sold for $62,600 and longhorn was sold for $30,750
B. AM stock was sold for $58,200 and longhorn was sold for $28,650.
C. Assume the same as part A except the aunt purchased AM stock for $71,000 and his uncle purchased Longhorn stock for $31,200

Because the FMV of the stock rights is at least 15% of the FMV of the stock, the $14,000 basis must be allocated between the stock rights and the stock. The basis of the stock rights is $2,000 [(5,000 / 35,000) x 14,000] and the basis of the stock is $12,000 [(30,000/35,000) x 14,000]
[nontaxable stock rights received]

Problem 5-41
Martha Lou owns 100 shares of Blain Corporation common stock. She purchased the stock on July 25, 1998 for $4,000. On May 2 of the current year, she receives a nontaxable distribution of 100 stock rights. each stock right has a $10 FMV, and the FMV of the Blain common stock is $70 per share. With each stock right, Martha Lou may acquire one share of Blain common for $68 per share. Assuming that she elects to allocate basis to the stock rights, answer the following:
A. What is the basis allocated to the stock rights?
B. If she sells the stock rights on June 10 for $1,080, determine the amount and character of the recognized gain.
C. If she exercises the stock rights on May 14, what is the basis of the 100 shares purchased and when does the holding period start?
D. If she does not elect to allocate basis to the stock rights, determine the amount and character of the gain if she sells the stock rights on June 10 for $1,080?

Problem 5-53
During 2018, Gary receives a $90,000 salary and has no deductions for AGI. In 2017, Gary had a $5,000 STCL and no other capital losses or capital gains. Consider the following sales and determined Gary's AGI for 2018
- an Automobile purchased in 2013 for $20,500 and held for personal use is sold for $7,000
- on April 10, 2018, stock held for investment is sold for $21,000. the stock was acquired on November 20, 2017, for $9,300

Problem 5-57
On January 1, 2017, Sean purchased a 8%, $100,000 corporate bond for $92,277. The bond was issued on January 1, 2017 and matures on January 1, 2022. Interest is paid semiannually, and the effective yield to maturity is 10% compound semiannually. On July 1, 2018, Sean sells the bond for $95,949. A schedule of inter amortization for the bond is shown in table 5-3.
A. How much interest income must Sean recognize in 2017?
B. How much interest income must Sean recognize in 2018?
C. How much gain must Sean recognize in 2018 on the sale of the bond?

Problem 5-58
Martha has $40,000 AGI without considering the following information. During the year, she incurs an LTCL of $10,000 and has a gain of $14,000 due to the sale of a capital asset held for more than one year.
A. If the $14,000 gain is not property classified as an LTCG (i.e. is improperly treated as an ordinary gain), determine Martha's AGI
B. If the $14,000 gain is properly classified as an LTCG, determine her AGI
C. If Martha has a $2,500 STCL carryover from earlier years, how would the answers to parts a and b be affected?

Problem 5-59 skip d
Without considering the following capital gains and losses, Charlene, who is single, has taxable income of $660,000 and a marginal tax rate of 37%. During the year, she sold stock held for nine months at a gain of $10,000; stock held for three years at a gain of $15,000; and a collectible asset held for six years at a gain of $20,000. Ignore the effect of the gains on any threshold amounts.
A. What is her taxable income and the increase in her income tax liability after considering the three gains?
B. In addition to the above three sales, assume that she sells another asset and has an STCL of $14,000. What is her taxable income and the increase in her tax liability after considering the four transactions>
C. In addition to the above three sales in part a, assume that she sells another collectible asset held seven years as an investment and has a $27,000 capital loss. What is her taxable income and the increase in tax liability after considering the four transactions?

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