Bobby received a gift of 500 shares of J Corp stock from his aunt on 6-30-16. On the date of the gift, the FMV of the stock was $86,000. Aunt had purchased the stock in 2001 for $44,000. The gift tax paid by the aunt in connection with this gift was $12,000. This is the only gift made by the aunt to Bobby in 2016.

A. What is Bobby’s basis in the stock?

B. If Bobby sells 300 shares of the stock on 11-15-16 for $33,000, what is the amount and character of the gain or loss that will be included in Bobby’s adjusted gross income for 2016?

Answer rating: 100% (QA)

a Bobbys basis in the stock is 86000 The basis of inherited property is generally t... View the full answer