medium · Certified Financial Planner Retirement
Ms. Voss receives a gift of stock from her father. On the date of the gift, the Fair Market Value (FMV) is 8,000 and the donor's basis is 10,000.
If Ms. Voss later sells the stock for 9,000, what is the recognized tax consequence?
- A long-term capital loss of 1,000.
- A capital gain of 1,000.
- No gain or loss is recognized.
- A short-term capital loss of 1,000.
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