Christie's father has been diagnosed with cancer and given one year to live. In an attempt to avoid capital gains tax, Christie transfers her stock with an adjusted basis of $32,000 and a fair market value of $35,000 to her father. Christie's father dies seven months after the transfer when the fair market value of the stock is $40,000. Christie subsequently sells the stock for $42,000. What is Christie's capital gain on the transaction? 

Answer rating: 100% (QA)

In this scenario there are a few key events to consider for calculating Christies capital gain 1 Chr... View the full answer