Question: Just prior to a major operation Cody gives his son

Just prior to a major operation, Cody gives his son, Martin, stock in Robin Corporation (fair market value of $500,000 and basis of $700,000). At the time of the gift, Cody held some unused capital losses. The surgery is unsuccessful, and after Cody’s death, Martin sells the stock for $800,000.
a. What is the income tax result for Martin?
b. What if the gift had not been made and the stock passed to Martin as a bequest from Cody?

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  • CreatedSeptember 09, 2015
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