Curt owns the following assets which he gives to his daughter Carla in 2009 (no gift tax results).

Both items have been held by Curt as an investment for more than one year.If Carla immediately sells these assets for $1 million ($400,000 + $600,000),she recognizes:

Question

Curt owns the following assets which he gives to his daughter Carla in 2009 (no gift tax results).

Both items have been held by Curt as an investment for more than one year.If Carla immediately sells these assets for $1 million ($400,000 + $600,000),she recognizes:

Quizplus · Accepted Answer

When an asset is held for more than one year, it is considered a long-term capital gain or loss when sold. Therefore, the $400,000 gain from the sale of the first asset is a long-term capital gain, and the $600,000 gain from the sale of the second asset is also a long-term capital gain. Since there were no losses incurred, the answer is a $200,000 long-term capital gain and no loss – choice D.

Curt Owns the Following Assets Which He Gives to His