hard · Certified Financial Planner Investment Planning

A donor gives stock with a fair market value of 12,000 and a donor's basis of 15,000 to a niece. The niece subsequently sells the stock for 13,500.

What is the tax consequence of this sale for the niece according to the dual-basis rules for gifts?

  1. No gain or loss is recognized.
  2. A long-term capital loss of 3,000.
  3. A long-term capital loss of 1,500.
  4. A short-term capital gain of 1,500.

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