easy · Certified Financial Planner Investment Planning
The Beaumont household receives a gift of stock from a grandmother. On the date of the gift, the Fair Market Value (FMV) of the stock is 8,000, and the grandmother's original basis was 10,000.
If the Beaumonts later sell the stock for 9,000, what is the tax consequence?
- A gain of 1,000 is recognized.
- No gain or loss is recognized.
- The entire 9,000 is taxed as ordinary income.
- A loss of 1,000 is recognized.
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