Simmons gives her child a gift of publicly-traded stock with a basis of $40,000 and a fair market value of $30,000. No gift tax

Question

3 years ago

10

Simmons gives her child a gift of publicly-traded stock with a basis of $40,000 and a fair market value of $30,000. No gift tax

is paid. The child subsequently sells the stock for $36,000.
What is the child's recognized gain or loss, if any?

a. $4,000 loss.
b. No gain or loss.
c. $6,000 gain.
d. $36,000 gain.

Business

1 answer:

LekaFEV [45] · Answer 1 · 2022-05-17T05:30:51+03:00

LekaFEV [45]3 years ago

5 0

Answer:

Explanation:

Basis in the stock = Carryover basis = $40,000

Recognized loss = $40,000 - $36,000

= $4,000