Laura's father, Albert, gave Laura a gift of 500 shares of Liba Corporation common stock in 2017. Albert's basis for the Liba st

Question

3 years ago

13

Laura's father, Albert, gave Laura a gift of 500 shares of Liba Corporation common stock in 2017. Albert's basis for the Liba st

ock was $4,000. At the date of this gift, the fair market value of the Liba stock was $3,000. If Laura sells the 500 shares of Liba stock in 2018 for $2,000, her basis is ________.A. $4,000
B. $3,000
C. $2,000
D. $0

Business

1 answer:

Vikentia [17] · Answer 1 · 2022-06-06T11:32:43+03:00

Answer:

B) $3,000

Explanation:

Since Laura acquired this property (stocks) by gift, her basis for loss will be $3,000 which is equal to the fair market value at the time she received the gift. If she had made a gain with this transaction, her basis for gain would have been the $4,000 of her father's basis.