On June 1, 2017, Gary gave Gertrude a gift of stock worth $10,000, paying no gift tax

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On June 1, 2017, Gary gave Gertrude a gift of stock worth $10,000, paying no gift tax on the transaction. Gary had purchased the stock for $7,500 in 2013. On October 1, 2017, Gertrude sold the stock to an unrelated party for $11,000. What is the amount and character of Gertrude's gain upon the sale?
a. $1,000 short-term capital gain
b. $3,500 long-term capital gain
c. $1,000 long-term capital gain
d. $3,500 short-term capital gain
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South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities

ISBN: 9781337386173

21st Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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