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)

Question

Quizplus · Accepted Answer

Shontelle recognizes a loss of $4,000, calculated as the difference between the selling price ($31,000) and the fair market value on the date of the gift ($35,000), since the property was sold for less than its fair market value at the time of the gift.

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