Marcia Marks received as a wedding present from an old friend a gold necklace worth $22,000. fte necklace had been purchased by the friend for $25,000. fte friend did not pay any gift tax. Marcia ran into some ﬁnancial diﬃculty and sold the necklace for $23,000. Marcia must recognize a gain of $1,000.
35. 500 shares of the Yellow Brick Construction Company were sold for $10,000, its fair market value, by Esmeralda Emerson to her sister, Topaz, for $8,500. Esmeralda has a nondeductible loss of $1,500.

Question

Quizplus · Accepted Answer

Neither gain nor loss would be reported since the selling price was between the basis in the hands of the donor and a lesser fair market value

Marcia Marks Received as a Wedding Present from an Old