Susan receives stock as a gift from her Aunt Ester on 6/22/21. On that date the Aunt’s basis in the stock was $20,000 and the fair market value was $15,000.

a) Three months later Susan sells the stock for $12,000. What does Susan recognize on her tax return with respect to this transaction?

b) Instead, three months later Susan sells the stock for $22,000. What does Susan recognize on her tax return with respect to this transaction?

c) Instead, three months later Susan sells the stock for $18,000. What does Susan recognize on her tax return with respect to this transaction?

Answer rating: 100% (QA)

The general rule with gifts is that the donors basis rolls over t... View the full answer