Shontelle received a gift of income-producing property with an adjusted basis of $49,000 to the donor and fair market value of $35,000 on the date of gift. No gift tax was paid by the donor. Shontelle subsequently sold the property for $31,000. What is the recognized gain or loss?
A) $0
B) ($4,000)
C) ($10,000)
D) ($18,000)
E) None of the above

Question

Quizplus · Accepted Answer

The recognized loss is $4,000, which is the difference between the fair market value of the property at the time of the gift ($35,000) and the amount realized on the sale ($31,000).

Shontelle Received a Gift of Income-Producing Property with an Adjusted