In 2018 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2009. At the time of the gift, the FMV of the stock was $29,300 and Tim’s basis was $31,000. If Ann sells the stock for $26,834 in 2018 what is the nature and amount of the loss from the sale?

a. $2,466 short-term loss.

b. $1,700 long-term loss.

c. $4,166 long-term loss.

d. $2,466 short-term loss and $1,700 long-term loss.