Amal gave his sister,Dora 100 shares of stock on April 3,2016.Amal originally paid $3,100 for the stock on January 5,2016.At the date of the gift,the fair market value of the stock was $2,800.If no gift tax is paid and Dora sells the stock for $2,700 on August 31,2017,she will recognize:

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CWhen Dora sells the stock for $2,700, she recognizes a loss because she sells it for less than the fair market value at the time of the gift ($2,800) and less than the original cost basis ($3,100). The loss is calculated based on the original cost basis ($3,100) since it's lower than the fair market value at the time of the gift. The holding period includes Amal's holding period, making it a long-term loss because the stock was held for more than a year from January 5, 2016, to August 31, 2017. Additionally, since it's a sale of a capital asset held for investment, it's considered a capital loss, not an ordinary loss.

Amal Gave His Sister,Dora 100 Shares of Stock on April