Tracy gave stock with an adjusted basis of $18,000 and an FMV of $15,000 to her nephew Phil. No gift tax was paid. Phil sold the stock for $16,000. The gain or loss Phil will recognize on the sale is

Question

Quizplus · Accepted Answer

Phil will recognize no gain or loss because the sale price is between the donor's adjusted basis ($18,000) and the FMV at the time of the gift ($15,000).

Tracy Gave Stock with an Adjusted Basis of $18,000 and an FMV