Ralph gives his daughter Angela stock basis of $600 fair market value of $10,000. No gift tax results. If Angela subsequently sells the stock for $4,000, what is her recognized loss?
a. $2,000
b. $2,000
c. $10,000
d. None of these.
QUESTION3
Max gives his daughter, Jane, stock basis of $8,000 fair market value of $4,000. No gift tax results. If Jane subsequently sells the stock for $5,000, what is her recognized gain or loss?
a. $2,000
b. $2,000
c. $10,000
d. None of the above