Ralph gives his daughter, Angela, stock (basis of $8,000? fair market value of $6,000). No gift tax results. If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss?
A) $0
B) $2,000
C) $4,000
D) $10,000
E) None of the above

Question

Quizplus · Accepted Answer

Angela's basis in the stock is $8,000, which is the same basis as Ralph (the donor). Since Angela sells the stock for $10,000, her recognized gain is $2,000 ($10,000 - $8,000 basis).

Ralph Gives His Daughter, Angela, Stock (Basis of $8,000? Fair