Kurt Kramer purchased stock ﬁve years ago for $12,000 which he gave to Jim Jensen when its fair market value was $9,000. Subsequently, Jim sold the stock for $7,500. What is the amount of Jim's loss on the sale?
A) $3,000
B) $1,500
C) $4,500
D) $2,000

Question

Quizplus · Accepted Answer

the basis for determining a loss for property received through a gift is the lesser of the fair market value or basis at the time of the gift. the refore, there is a $1,500 loss ($7,500 - $9,000).

Kurt Kramer Purchased Stock ﬁVe Years Ago for $12,000 Which