In 2013,Felix gives 10,000 shares of stock to his daughter,Monica.The stock was acquired in 2004 for $200,000,and at the time of the gift,it had a fair market value of $600,000.Felix paid a gift tax of $240,000.[Assume the gift tax exclusion has been used by Felix-see Chapter 1.]
a. Does the receipt of the stock result in gross income to Monica?
b. What is Monica's basis in the stock?

Question

In 2013,Felix gives 10,000 shares of stock to his daughter,Monica.The stock was acquired in 2004 for $200,000,and at the time of the gift,it had a fair market value of $600,000.Felix paid a gift tax of $240,000.[Assume the gift tax exclusion has been used by Felix-see Chapter 1.]
 a. Does the receipt of the stock result in gross income to Monica?
b. What is Monica's basis in the stock?

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The Answer of In 2013,Felix gives 10,000 shares of stock to his daughter,Monica.The stock was acquired in 2004 for $200,000,and at the time of the gift,it had a fair market value of $600,000.Felix paid a gift tax of $240,000.[Assume the gift tax exclusion has been used by Felix-see Chapter 1.]
 a. Does the receipt of the stock result in gross income to Monica?
b. What is Monica's basis in the stock?

In 2013,Felix Gives 10,000 Shares of Stock to His Daughter,Monica