hard · Certified Financial Planner Estate Planning

Mrs. Ellison gifts 1,000 shares of stock to her niece. The FMV on the date of the gift is 40,000 and Mrs. Ellison's basis was 50,000. The niece sells the stock one year later for 44,000.

What is the niece's recognized gain or loss for tax purposes?

  1. 4,000 gain
  2. 44,000 gain
  3. (6,000) loss
  4. 0

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