Amal gave his sister, Dora 100 shares of stock on April 3, 2019 when its FMV...

Amal gave his sister, Dora 100 shares of stock on April 3, 2019 when its FMV was $3500. Amal originally paid $3,000 for the stock on January 5, 2018. If no gift tax is paid and Dora sells the stock for $2,700 on August 31, 2019, she will recognize:

Select one:

a. None of the above

b. $800 LTCL

c. $300 short-term capital loss

d. $800 STCL

e. $300 LTCL

Solutions

Expert Solution


The basis for property acquired by gift is generally the donor's adjusted basis for Donee.
Holding period will be considered from the date of purchase by the donor, hence the gain or loss will be long term.

Dora basis for stock sold	3,000
Selling price	2,700

Long term capital loss	- 300	( 2,700 - 3,000 )

Correct answer is option e (i.e.$300 LTCL ).

ekkarill92 answered 1 year ago

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