Elbert gives stock worth $28,000 (no gift tax resulted)to his friend,Jeff,on June 8,2013.Elbert purchased the stock on September 1,2006,and his adjusted basis is $22,000.Jeff dies on December 8,2014,and bequeaths the stock to Elbert.At that date,the fair market value of the stock is $31,000.
a. What is Jeff s basis and holding period for the stock?
b. What is Elbert's basis and holding period for the stock?

Question

Elbert gives stock worth $28,000 (no gift tax resulted)to his friend,Jeff,on June 8,2013.Elbert purchased the stock on September 1,2006,and his adjusted basis is $22,000.Jeff dies on December 8,2014,and bequeaths the stock to Elbert.At that date,the fair market value of the stock is $31,000.
 a. What is Jeff s basis and holding period for the stock?
b. What is Elbert's basis and holding period for the stock?

Quizplus · Accepted Answer

The Answer of Elbert gives stock worth $28,000 (no gift tax resulted)to his friend,Jeff,on June 8,2013.Elbert purchased the stock on September 1,2006,and his adjusted basis is $22,000.Jeff dies on December 8,2014,and bequeaths the stock to Elbert.At that date,the fair market value of the stock is $31,000.
 a. What is Jeff s basis and holding period for the stock?
b. What is Elbert's basis and holding period for the stock?

Elbert Gives Stock Worth $28,000 (No Gift Tax Resulted)to His