Question: Roby and James have been married for nine years Roby

Roby and James have been married for nine years. Roby sells Plum, Inc. stock that she has owned for four years to James for its fair market value of $180,000. Her adjusted basis is $200,000.
a. Calculate Roby's recognized gain or recognized loss.
b. Calculate James's adjusted basis for the stock.
c. How would the tax consequences in (a) and (b) differ if Roby had made a gift of the stock to James? Which form of the transaction would you recommend?

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  • CreatedMay 25, 2015
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