Noriko sells stock to her daughter, Aiko, for $3,000 (the FMV at the time of the sale) on 12/7/22. Noriko paid $5,000 for the stock on 6/5/97. 

How much realized gain or loss does Noriko have on the sale to Aiko?

How much recognized gain or loss does Noriko have on the sale to Aiko?

How much of the stock gain or loss can Noriko potentially claim on her 2022 tax return? 

What is Aiko's basis in the stock when she purchases it from Noriko?

If Aiko sells the same stock she purchased from her mother for $4,600 to an unrelated party on 1/8/23, how much of a realized gain (or loss) does Aiko have on the sale?

How much of a recognized gain (or loss) does Aiko have on the sale?

Which of the above figures (realized OR recognized) is the amount actually used on Aiko's 2023 tax return? If, instead of selling the same stock she purchased from her mother for $4,600, Aiko instead sells it for $2,700 to an unrelated party on 9/8/23, how much of a realized gain (or loss) does Aiko have on the sale?

Answer rating: 100% (QA)

To determine the realized and recognized gains or losses for Noriko and Aiko we need to consider the cost basis of the stock the sales price and the f... View the full answer