Your manager advises you that Sam Skinner, a long-time client, died on February 13 of the current year, survived by his wife Sue Skinner and several adult children. The Skinners are residents of a non-community property state. Earlier in the current year Sam sold stock at a $40,000 long-term capital loss. To date, neither Sam nor Sue has sold any other capital assets. The estate is not likely to distribute any assets to Sue before the end of the current year. Sue owns three stocks that have appreciated in value (ABC purchased in November of the previous year with $12,000 appreciation, JKL purchased two years ago with $25,000 appreciation, and TUV purchased three years ago with $28,000 appreciation). What will be the capital gain or loss consequences for the current year’s joint tax return if no additional sales of capital assets occur? Assume all three of Sue’s stocks have the same predicted appreciation rate. Suggest a planning strategy for your manager to discuss with Sue next month. Your manager suggests that, as a research source, you consult a recent article in The Tax Adviser, a publication of the AICPA.