At the time of his death, Gerard owned stock in Theta Corporation.The stock was acquired four years ago at a cost of $350,000, and its fair market value as of Gerard's death was $325,000.Eleven months after Gerard's death, the estate sells the stock for $310,000.The result of the sale is:

Question

Quizplus · Accepted Answer

Since the stock was held for more than one year, it qualifies for long-term capital gains treatment. The fair market value at the time of death is considered the basis for tax purposes, so the estate's sale of the stock resulted in a long-term capital loss of $15,000 ($325,000 basis minus $310,000 sale price).

At the Time of His Death, Gerard Owned Stock in Theta