Three years ago, Mrs. Best purchased 1,000 shares of NN stock from an unrelated party for $12 per share. After her purchase, the value of the shares steadily declined. Two weeks ago, an page 16-43 unrelated party offered to buy the shares for 30 cents per share. Mrs. Best declined the offer and immediately mailed her shares to NN’s secretary-treasurer with a note declaring her intention to abandon them.

Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.