Grace Gunther purchased King Corporation stock on March 18, 2011, and on December 23, 2011, she gave the stock to her son, Jack. She paid $12,000 for the stock and the fair market value at the time of the gift was
$13,000. On October 14, 2012, Jack sold the stock for $14,500.
(a.) Does Jack have short-term or long-term gain or loss and how much?
(b.) If the value of the stock at the time of the gift was $10,500, and Jack sold it on October 14, 2012, for $9,500, does he have short-term or long-term gain or loss and how much?

Question

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The Answer of Grace Gunther purchased King Corporation stock on March 18, 2011, and on December 23, 2011, she gave the stock to her son, Jack. She paid $12,000 for the stock and the fair market value at the time of the gift was
$13,000. On October 14, 2012, Jack sold the stock for $14,500.
(a.) Does Jack have short-term or long-term gain or loss and how much?
(b.) If the value of the stock at the time of the gift was $10,500, and Jack sold it on October 14, 2012, for $9,500, does he have short-term or long-term gain or loss and how much?

Grace Gunther Purchased King Corporation Stock on March 18, 2011