A taxpayer gifted stock held for two years to the taxpayer's adult child. The taxpayer's basis was $120,000 and the fair market value of the stock at the time of the gift was $125,000. Six months later, the taxpayer's child sold the stock for $110,000. What is the amount and character of the gain (loss), if any, to be reported on the child's tax return? 

Answer rating: 100% (QA)

To determine the gain or loss on the sale of the gifted stock by the taxpayers chil... View the full answer