Angela receives stock (worth $11,000)as a gift from her aunt.Her aunt's adjusted basis is $7,000 and the transfer did not result in a gift tax.Angela's basis in the stock is $11,000.

Question

Quizplus · Accepted Answer

Angela's basis in the stock is the same as her aunt's adjusted basis of $7,000, since the fair market value at the time of the gift ($11,000) is greater than the aunt's basis and no gift tax was paid.

Angela Receives Stock (Worth $11,000)as a Gift from Her Aunt