On January 4, 2018, Courtney gave his son, Brian, stock valued at $10,000 that he had purchased three years earlier for $16,000. Later in the year, Brian sold the stock for $11,000. What is the amount and type of gain or loss that Brian will report on this sale?

Question

Quizplus · Accepted Answer

When a gift is given, the recipient takes the donor's basis for determining gain or loss. Since the stock was sold for more than its fair market value at the time of the gift but less than the donor's original purchase price, there is no gain or loss to report.

On January 4, 2018, Courtney Gave His Son, Brian, Stock