Ned Stark gifted his son Jon, Dragon, Inc. stock worth $10,000 FMV on January 1st of this year. Prior to the gift, Ned owned the stock for 3 years and had a basis of $15,000. Jon subsequently sells the stock for $8,000 on September 1st of this year. What are the tax consequences for Jon upon the sale? A. $2,000 short-term capital loss B. $2,000 long-term capital loss C. $7,000 short-term capital loss D. $7,000 long-term capital loss

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Solution We need to find the tax consequences for Jon upon the sale Neds basis of 15000 ... View the full answer