On July 25, 2017, Marilyn gives stock with a FMV of $7,500 and a basis of $5,000 to her nephew Darryl. Marilyn had purchased the stock on March 18, 2017. Darryl sold the stock on April 18, 2018 for $7,800. As a result of the sale, what will Darryl report on his 2018 tax return?

Question

Quizplus · Accepted Answer

Darryl will report a $2,800 LTCG on his 2018 tax return because the stock was held for more than one year before it was sold.

On July 25, 2017, Marilyn Gives Stock with a FMV